Euro soared close to a 15-month high

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Pound Sterling

Sterling has shown strength against the Euro this morning, benefiting from economists expectations that an imminent UK construction report will reveal that this key sector contracted at a slower pace last month. After sinking close to a 15 month low against the common currency the Pound climbed slightly as trade began today. If Markit’s construction index does rise from 48.7 to 49.2 as predicted the Pound could see further gains, although Eurozone PMI figures are also of interest.

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 1.5714

US Dollar

Although disappointing US Non-Farm Payrolls data caused the US Dollar to fall against several of its most traded peers on Friday a strong ISM manufacturing PMI saw it recoup much of its losses before the close of trade. The key piece of US news today comes in the form of factory order data for December.

The US Dollar is presently trading against the Pound in the region of 0.6364 and is trading against the Euro in the region of 0.7350

Euro

On Friday the Euro soared close to a 15-month high against the Pound, trading in the region of 87.17 pence. The common currency has declined slightly against its British rival this morning however, as industry experts forecast an improvement in the UK manufacturing sector. Today significant Euro volatility could be triggered by PMI data for the currency bloc.

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 1.3605

Australian Dollar

With the Reserve Bank of Australia broadly expected to hold interest rates at their present level when they meet tomorrow, and data forecast to show a narrowing of Australia’s trade deficit on the way, the ‘Aussie’ was able to gain several of its main currency rivals. The Australian Dollar made a notable advance against the Japanese Yen, brushing the highest level for nearly four and a half months.

The Australian Dollar is presently trading against the Pound in the region of 0.6632, is trading against the Euro in the region of 0.7655 and is trading against the US Dollar in the region of 1.0415

New Zealand Dollar

With demand for higher-yielding assets boosted by rallying global stocks the New Zealand Dollar was pushed to its strongest level for 16 months against its American counterpart, as well as achieving its best level since July 2010 against the ‘Aussie’. The ‘Kiwi’ also achieved a notable high against the safe-haven Yen. Later today the New Zealand Dollar could experience additional movement in response to average hourly earnings data for the nation.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5377, is trading against the Euro in the region of 0.6211 and is trading against the US Dollar in the region of 0.8451

Canadian Dollar

After trading above parity with its US rival on the back of positive GDP data for the nation the Canadian Dollar ended trade flat on Friday, following strong US ISM figures. Although the greater-than-forecast expansion of the US manufacturing sector improved commodity prices the ‘Loonie’ experienced little movement. The first piece of influential Canadian news, the Ivey PMI SA for January, is scheduled for release on Wednesday.

The Canadian Dollar is presently trading against the Pound in the region of 0.6387, is trading against the Euro in the region of 0.7372 and is trading against the US Dollar in the region of 1.0030

 

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.