Euro resumed its decline

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Pound Sterling

With the UK Debt Management Office readying itself to auction 1 billion Pounds of inflation-linked securities (due 2029) Sterling remains relatively unchanged against both the Euro and US Dollar. Yesterday the British currency dropped to 1.5976 against the ‘Greenback’ and held at around 83.10 pence against its European cousin after reaching 83.12 pence per Euro. The next piece of influential economic news for the UK comes tomorrow in the form of retail sales figures for December.

The Pound is presently trading against the Euro in the region of 1.2002 and is trading against the US Dollar in the region of 1.6021

US Dollar

The US Dollar’s bearish relationship with its safe-haven rival the Japanese Yen continued yesterday as the Yen was supported by further speculation regarding the extent of Japanese monetary easing. Today ‘Greenback’ movement could follow the release of several pieces of US data, including building permits, housings starts and initial jobless claims.

The US Dollar is presently trading against the Pound in the region of 0.6242 and is trading against the Euro in the region of 0.7496

Euro

After beginning the day with gusto the Euro resumed its decline against its American counterpart. The Euro’s recent losses can be attributed to comments made by the Luxembourg Prime Minister regarding the dangers the common currency’s strength pose to Eurozone trade. The Euro did manage to gain on the Pound however, advancing over 30 pips. The publication of the European Central Bank’s monthly report is sure to trigger market volatility this morning.

The Euro is presently trading against the Pound in the region of 0.8327 and is trading against the US Dollar in the region of 1.3322

Australian Dollar

An unexpected fall in payrolls caused the Australian Dollar to drop against most of its competitors yesterday. This latest piece of disappointing data adds to fears concerning the stability of the Australian economy and pushed the ‘Aussie’ 0.6 per cent lower against the US Dollar and 0.3 per cent lower against the Japanese Yen. With no more significant home-grown data this week investors will be looking to Asia and ahead to next week, preparing for further indications of slowing growth.

The Australian Dollar is presently trading against the Pound in the region of 0.6571, is trading against the Euro in the region of 0.7901 and is trading against the US Dollar in the region of 1.0521

New Zealand Dollar

Over the course of trade yesterday the New Zealand Dollar shed 0.2 per cent against the US Dollar and remained little changed against the Japanese Yen. However, notable fluctuations in the South Pacific currency can be expected in the hours ahead following the release of the nation’s CPI figures for the fourth quarter. Also of interest are tomorrow’s Chinese 4Q GDP, industrial production and retail sales statistics.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5257, is trading against the Euro in the region of 0.6305 and is trading against the US Dollar in the region of 0.8401

Canadian Dollar

In light of the World Bank’s decision to cut its global growth forecast for the year and the Fed Chairman’s pessimistic speech regarding US economic recovery, the global outlook dimmed and the Canadian Dollar fell accordingly. The commodity driven ‘Loonie’ shed 0.21 US cents over the course of trade. With today’s Canadian economic news being of low volatility movement in the nation’s currency may result from developments in the US and Eurozone.

The Canadian Dollar is presently trading against the Pound in the region of 0.6331, is trading against the Euro in the region of 0.7601 and is trading against the US Dollar in the region of 1.0139

 

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.