After extending declines against the majority of its most traded rivals yesterday following the release of the UK consumer price index the Pound was little changed as the European session opened and investors looked ahead to today’s Bank of England inflation report and UK employment data. If the data adds to the improving picture of the UK’s economic recovery Sterling could recover losses as trading continues.
GBP/EUR is trading in the region of 1.1828 and GBP/USD is trading in the region of 1.5889
Yesterday the ‘Buck’ posted notable gains against its higher-risk rivals as a gauge of US business activity showed improvement, increasing speculation surrounding when the Federal Reserve will begin to taper quantitative easing. Further US Dollar movement may be inspired by today’s US mortgage applications data and the publication of the US monthly budget statement.
USD/GBP is trading in the region of 0.6292 and USD/EUR is trading in the region of 0.7445
While the Euro continued to trade strongly against a flagging Pound ahead of the release of industrial production figures for the Eurozone, the common currency snapped a recent run of gains against the ‘Greenback’. The Euro weakened against the US Dollar as expectations regarding tomorrow’s French, German and Eurozone growth data wore on the asset.
EUR/GBP is trading in the region of 0.8451 and EUR/USD is trading in the region of 1.3435
With Australia’s wage cost index failing to meet expectations and Federal Reserve tapering speculation mounting the ‘Aussie’ slid to an eight-week low against its US counterpart overnight. Although tomorrow’s consumer inflation expectation report will be of interest, Australian Dollar fluctuations are likely to be driven by US news over the next few days.
AUD/GBP is trading in the region of 0.5844, AUD/EUR is trading in the region of 0.6919 and AUD/USD is trading in the region of 0.9289
New Zealand Dollar
During Australasian trading the ‘Kiwi’ recovered from close to an eight-week low against the ‘Greenback’ as a result of comments issued by Graeme Wheeler, Governor of the Reserve Bank of New Zealand. The central bank chief asserted that once interest rates start being raised in 2014 the New Zealand Dollar could strengthen, and the currency accordingly rose against rivals like the US Dollar and Pound.
NZD/GBP is trading in the region of 0.5179, NZD/EUR is trading in the region of 0.6121 and NZD/USD is trading in the region of 0.8211
The ‘Loonie’ lost ground yesterday as the positive data emerging from the US highlighted the disparity between Canada’s economic recovery and that of its neighbour. The Canadian Dollar slipped against several of its rivals prior to tomorrow’s Canadian new housing price index.
CAD/GBP is trading in the region of 0.6004, CAD/EUR is trading in the region of 0.7102 and CAD/USD is trading in the region of 0.9540
These exchange rates were correct as of 9:10 am