Euro gained on peers

Pound Sterling

After achieving its highest level against the US Dollar for more than two months and breaking free from four days of declines against the Euro the Pound was able to maintain its position despite a UK housing report showing a drop in property prices. According to a report compiled by Rightmove Plc house values in England and Wales fell by 3.3 per cent. The next pieces of influential economic news for the UK come tomorrow in the form of producer price index and consumer price index figures.

The Pound is presently trading against the Euro in the region of 1.2304 and is trading against the US Dollar in the region of 1.6185

US Dollar

After a worse-than-forecast Core CPI report heightened speculation that the Federal Reserve will hold interest rates at their present level for some time to come the US Dollar posted significant losses, declining against several of its most traded peers. This week volatility is most likely to result from developments in the ongoing budget negotiations between President Barak Obama and US Congressional leaders.

The US Dollar is presently trading against the Pound in the region of 0.6178 and is trading against the Euro in the region of 0.7602

Euro

The Euro benefited from increased risk taking in the marketplace on Friday, recording notable gains against several of its most prominent counterparts. Movement in the common currency can be expected this week as several key Eurozone events and data releases take place. Of particular interest today is European Central Bank President Mario Draghi’s speech to the European parliament panel.

The Euro is presently trading against the Pound in the region of 0.8129 and is trading against the US Dollar in the region of 1.3158

Australian Dollar

The ‘Aussie’ was able to hit its strongest level for almost 20 months against safe-haven rival the Japanese Yen after the results of the Japanese election became known. The nation’s main opposition party reclaimed power yesterday, making increased monetary stimulus in the weeks ahead extremely likely. Later today the release of the Reserve Bank of Australia’s meeting minutes could cause movement. Over the rest of the week fluctuations in the South Pacific currency will most likely be caused by developments in Asia and the US.

The Australian Dollar is presently trading against the Pound in the region of 0.6509, is trading against the Euro in the region of 0.8010 and is trading against the US Dollar in the region of 1.0540

New Zealand Dollar

The increasing likelihood of Japan implementing further fiscal stimulus in the weeks ahead benefited the currency of one its most prominent trading partners. The New Zealand Dollar struck a four-year high against the Yen after the victory of Japans pro-easing main opposition party. Of particular importance to the ‘Kiwi’ this week is Wednesday’s release of New Zealand’s third quarter gross domestic product figures.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5210, is trading against the Euro in the region of 0.6411 and is trading against the US Dollar in the region of 0.8439

Canadian Dollar

At the end of last week the Canadian Dollar broadly softened as a result of declining Canadian factory sales and a better-than-expected increase in US industrial production. The commodity-driven currency declined 0.09 per cent against the ‘Greenback’. Volatility in the ‘Loonie’ could occur today following the release of Canadian existing home sales statistics for November.

The Canadian Dollar is presently trading against the Pound in the region of 0.6263, is trading against the Euro in the region of 0.7705 and is trading against the US Dollar in the region of 1.0139

 

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.