Euro gains on Yen and US Dollar

Pound Sterling

The Pound was finally able to break free from its six-day run of declines against the Euro, gaining 0.3 per cent against the common currency after dropping to a two-week low. The increasing likelihood of the Bank of England instigating further stimulus caused Sterling to retain yesterday’s level against the US Dollar and march towards a third week of declines. Movement in the British currency will be limited today due to a lack of economic news.

The Pound is presently trading against the Euro in the region of 1.2463 and is trading against the US Dollar in the region of 1.5873

US Dollar

The US Dollar broadly softened over the course of trade yesterday as concerns regarding US economic recovery grew. This weekend President Barack Obama will meet with Republican lawmakers to discuss means of avoiding the impending ‘fiscal-cliff’ and the outcome of this gathering is likely to cause significant ‘Greenback’ volatility. Today investors will be focusing on the US industrial production figures for October.

The US Dollar is presently trading against the Pound in the region of 0.6300 and is trading against the Euro in the region of 0.7854

Euro

In spite of statistics revealing that the Eurozone has entered its second recession in recent years US economic concerns pushed investors away from safe-haven assets and towards higher-yielding currencies. Consequently the Euro – which declined against the British Pound – was able to march to a two-week high against the Japanese Yen and a six-day high against the US Dollar. However, the common currency could well shed its gains as uncertainty continues to shroud the Greek bailout. Eurozone and Italian trade balance figures for September could trigger modest movement in the Euro today.

The Euro is presently trading against the Pound in the region of 0.8024 and is trading against the US Dollar in the region of 1.2734

Australian Dollar

Stocks declined worldwide due to heightened anxiety over developments in the Gaza strip and the state of global economic recovery. As a result the Australian Dollar was driven to within 0.1 per cent of a three-week low against its American rival. The ‘Aussie’ held on to its recent losses until the end of trade after the International Monetary Fund stated that the Reserve Bank of Australia has the potential to initiate additional stimulus.

The Australian Dollar is presently trading against the Pound in the region of 0.6509, is trading against the Euro in the region of 0.8104 and is trading against the US Dollar in the region of 1.0333

New Zealand Dollar

The ‘Kiwi’ entered a bearish relationship with its contemporaries after stock markets weakened and risk appetite strengthened, driving investors to higher-yielding assets like the Euro. The New Zealand Dollar was able to advance on the Japanese Yen however on the strength of talks over Japan’s upcoming elections. Fluctuations in the South Pacific currency are likely to be minimal today due to an absence of economic data releases for New Zealand.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5103, is trading against the Euro in the region of 0.6341 and is trading against the US Dollar in the region of 0.8089

Canadian Dollar

The Canadian Dollar was finally able to snap its recent run of losses and advance on its US contemporary. A broadly softening US Dollar enabled the ‘Loonie’ to post a gain of 0.2 per cent on the ‘Greenback’. However further movement in the currency is likely to be the result of American developments, like the release of Octobers US industrial production figures.

The Canadian Dollar is presently trading against the Pound in the region of 0.6294, is trading against the Euro in the region of 0.7842 and is trading against the US Dollar in the region of 0.9984

 

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.