Euro remained buoyed

Pound Sterling

After UK housing data exceeded expectations the Pound was able to climb to a two-week high against its American counterpart, rising 0.2 per cent. Statistics compiled by Nationwide Mortgage Lenders indicated that UK house prices increased at a faster pace than forecast during October – a welcome piece of good news in light of recent dips in confidence regarding UK economic recovery. If the UK CIPS Manufacturing PMI figure should also outperform predictions the Pound could be pushed higher as trade continues.

The Pound is presently trading against the Euro in the region of 1.2487 and is trading against the US Dollar in the region of 1.6161

US Dollar

After financial markets reopened yesterday the US Dollar turned moderately bullish against its main rivals, recording significant advances against fellow safe-haven currency the Japanese Yen. Several pieces of US data – including the ADP Non-Farm Employment Change, CB Consumer Confidence figure and ISM Manufacturing PMI – could cause volatility in the ‘Greenback’ today. If any of these key indicators should come in above the expected levels the US Dollar could be boosted.

The US Dollar is presently trading against the Pound in the region of 0.6193 and is trading against the Euro in the region of 0.7715

Euro

The Euro remained buoyed by Tuesday’s positive Eurozone developments as trade began yesterday but as the day wore on it proved unable to hold on to its recent gains. The common currency posted particular declines against lower-risk assets including the US Dollar and Japanese Yen. With bank holidays across the Eurozone keeping developments in the 17-nation currency block to a minimum Euro volatility is more likely to occur as a result of news from the US.

The Euro is presently trading against the Pound in the region of 0.8012 and is trading against the US Dollar in the region of 1.2944

Australian Dollar

After Chinese manufacturing figures indicated that industrial activity in the Asian superpower had hit a 32-week high the outlook for global economic recovery improved, as did the prospects for China’s main trading partners. The Australian Dollar was supported by the news but any gains were tempered as investors maintained a wary approach to the market in the wake of Superstorm Sandy. Already eyes are looking ahead to next Tuesday and the Reserve Bank of Australia’s policy making board meeting. Movement in the ‘Aussie’ is likely to be limited until that takes place.

The Australian Dollar is presently trading against the Pound in the region of 0.6421, is trading against the Euro in the region of 0.8009 and is trading against the US Dollar in the region of 1.0362

New Zealand Dollar

Although China’s official PMI rose from 49.8 in September to 50.2 in October the figure was slightly below economist’s expectations and the New Zealand Dollar recorded little change following the news. Fluctuations in the ‘Kiwi’ today will probably be caused by the stream of US data released scheduled for the hours ahead.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5093, is trading against the Euro in the region of 0.6323 and is trading against the US Dollar in the region of 0.8219

Canadian Dollar

For the third day the Canadian Dollar traded below parity against its US counterpart. Statistics Canada revealed yesterday that output dropped by 0.1 per cent and a report due for release tomorrow is now expected to show a slowing in the nation’s hiring in October. These factors contributed to the ‘Loonie’ falling to an almost three-month low against the US Dollar. If the Net Change in Employment and Unemployment rate figures disappoint tomorrow the Canadian Dollar could post further losses against its main competitors.

The Canadian Dollar is presently trading against the Pound in the region of 0.6199, is trading against the Euro in the region of 0.7726 and is trading against the US Dollar in the region of 0.9993

 

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.