Euro gaining on the Pound

money_euros

Pound Sterling

Despite Bank of England policy maker David Miles asserting that the British central bank should up stimulus methods the Pound experienced little movement against the US Dollar and Euro. However, Sterling is still heading for a second weekly drop against the ‘Greenback’ and could continue to fall if next week’s GDP report meets economist’s expectations and shows that the UK economy contracted in the last three months of 2012.

The Pound is presently trading against the Euro in the region of 1.1550 and is trading against the US Dollar in the region of 1.5269

US Dollar

Declining Asian stocks and disappointing Eurozone data encouraged investors to turn to safe-haven assets yesterday. Consequently, the US Dollar gained on several of its most traded peers, including the British Pound and Euro. With little influential US data scheduled for release today movement in the ‘Greenback’ is likely to occur as a result of global economic developments.

The US Dollar is presently trading against the Pound in the region of 0.6549 and is trading against the Euro in the region of 0.7565

Euro

Although a report released this morning has confirmed that German GDP contracted by 0.6 per cent in the fourth quarter of last year, the breakdown of the figure has not dissuaded industry experts from believing that there will be a return to growth in the first quarter of 2013. Meanwhile, a stronger-than-forecast German Ifo figure led to the Euro gaining on the Pound. Additional movement can be expected following the European Central Bank’s announcement regarding 3-year LTRO loan repayment.

The Euro is presently trading against the Pound in the region of 0.8658 and is trading against the US Dollar in the region of 1.3218

Australian Dollar

After Glenn Stevens, Governor of the Reserve Bank, expressed his support for the current level of borrowing costs the Australian Dollar was able to recoup the previous day’s losses. Steven’s comments regarding currency intervention saw the ‘Aussie’ climb against all of its key rivals, notably gaining 0.7 per cent on the US Dollar. Today fluctuations in the South Pacific currency will be limited due to a lack of influential news, although movement may be triggered by global developments.

The Australian Dollar is presently trading against the Pound in the region of 0.6745, is trading against the Euro in the region of 0.7794 and is trading against the US Dollar in the region of 1.0300

New Zealand Dollar

A positive credit card spending report saw the New Zealand Dollar break free of its recent run of declines and post modest advances on rivals like the US Dollar. However, the ‘Kiwi’ still stands to post a weekly drop of 0.9 per cent against the ‘Greenback’ and could continue dropping next week if the RBNZ makes further mention of currency intervention.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5484, is trading against the Euro in the region of 0.6323 and is trading against the US Dollar in the region of 0.8367

Canadian Dollar

The Canadian Dollar dropped against its American counterpart for a fifth consecutive day as crude oil fell and risk-appetite waned. The FOMC announcement, in which the Fed indicated that it might slow the rate of easing, also wore on the ‘Loonie’, pushing it to its lowest level against the US Dollar since July last year. The Canadian Dollar is likey to experience significant volatility today following the release of Canadian CPI and retail sales figures.

The Canadian Dollar is presently trading against the Pound in the region of 0.6436, is trading against the Euro in the region of 0.7432 and is trading against the US Dollar in the region of 0.9824

These exchange rates were correct as of 9:25 am

Laura Barrett
This post was written by
Laura moved from the US to the UK several years ago. As a corporate sales executive for a leading foreign exchange company, Laura has expert knowledge of currency movements and market trends and is able to offer specialist guidance regarding making a trade at the most lucrative time and protecting transactions from currency risk.