Euro plummeted to a seven-week low

Pound Sterling

Despite yesterday’s relatively gloomy mid-year UK budget update the Pound experienced little movement against two of its main competitors, the Euro and US Dollar. Fluctuations are far more likely to occur today as the Bank of England announces its rate decision and asset purchase target. Any progression in the US fiscal cliff saga could also affect the Pound over the course of the day.
The Pound is presently trading against the Euro in the region of 1.2327 and is trading against the US Dollar in the region of 1.6098

US Dollar

The US Dollar’s bullish relationship with fellow safe-haven currency the Japanese Yen proved short lived. Disappointing economic indicators in the Eurozone and US caused the ‘Greenback’ to grow bearish with a trading level low of 82.04. Of particular interest today are the US weekly unemployment claims figures and Eurozone third-quarter GDP. If Eurozone contraction turns out to be worse than anticipated it could dampen risk appetite, allowing the ‘Greenback’ to gain on its riskier peers.
The US Dollar is presently trading against the Pound in the region of 0.6214 and is trading against the Euro in the region of 0.7656

Euro

After posting notable gains against several of its largest currency rivals yesterday the Euro plummeted to a seven-week low against the US Dollar as investors await the release of a report which is expected to show that the Eurozone’s economy contracted in the third quarter. The common currency also suffered as a result of Standard & Poor’s downgrade of Greece to selective default. In the hours ahead significant movement can be expected as European Central Bank leaders meet to discuss policy and German factory order figures for October are released.
The Euro is presently trading against the Pound in the region of 0.8114 and is trading against the US Dollar in the region of 1.3062

Australian Dollar

The Australian Dollar received an unexpected boost today as the nation’s unemployment rate defied predictions and fell to 5.2 per cent in November from 5.4 per cent in October. The surprising data renewed confidence in the resilience of the Australian economy and drove the ‘Aussie’ higher against several of its most traded peers, most notably the US Dollar. Further fluctuations could occur following this evening’s release of Australian AiG performance of construction Index data.
The Australian Dollar is presently trading against the Pound in the region of 0.6503, is trading against the Euro in the region of 0.8013 and is trading against the US Dollar in the region of 1.0466

New Zealand Dollar

Yesterday Graeme Wheeler, Governor of the Reserve Bank of New Zealand expressed fears over the persisting strength of the ‘Kiwi’. Wheeler detailed how the robust New Zealand Dollar was deterring tourism and encouraging consumers to buy foreign made goods, denting export earnings. The central bank also raised its forecasts for the South Pacific currency. After the monetary policy statement the ‘Kiwi’ advanced against its US counterpart. Tomorrow volatility in the US Dollar could follow the release of Australian trade balance data for October.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5126, is trading against the Euro in the region of 0.6307 and is trading against the US Dollar in the region of 0.8294

Canadian Dollar

Disappointing US employment data, mixed commodity prices and the expectation that the Chinese government could sanction further monetary easing triggered a rise in the Canadian Dollar, allowing it to close trade yesterday higher than it began. Against the US Dollar it rose by 0.16 of a cent. The main cause of movement in the ‘Loonie’ today will be the Bank of Canada’s release of its Financial System Review.
The Canadian Dollar is presently trading against the Pound in the region of 0.6263, is trading against the Euro in the region of 0.7717 and is trading against the US Dollar in the region of 1.0086

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.