Exchange Rate Outlook: Currencies Steady Before Christmas

christmas-currencies

Pound Sterling

The Pound remained close to a two-year high against the US Dollar overnight as the US University of Michigan confidence measure failed to advance as forecast. While Sterling may experience some movement in response to UK mortgage approvals data, the risk of currency market volatility is low ahead of the Christmas break.

GBP/EUR is trading in the region of 1.1938 and GBP/USD is trading in the region of 1.6329

US Dollar

After dipping against several of its main rivals yesterday the ‘Greenback’ returned to bullish form overnight. The North American currency was close to a five-year high against the Yen following the release of the Bank of Japan’s monthly economic report. If today’s US durable goods order exceeds estimates for a gain of 1.3 per cent the ‘Greenback’ could edge higher during quiet trading.

USD/GBP is trading in the region of 0.6124 and USD/EUR is trading in the region of 0.7312

Euro

The Euro was little changed yesterday following the release of the German import price index and remained slightly softer against the US Dollar as local trading began. Common currency fluctuations are likely to be limited today due to a lack of pertinent economic news.

EUR/GBP is trading in the region of 0.8375 and EUR/USD is trading in the region of 1.3677

Australian Dollar

Although bets concerning further tapering from the Fed have fallen slightly, the ‘Aussie’ continues to trade close to a three-year low against its North American rival. The Australian Dollar also remains lower against the Pound as markets prepare to shut down for the Christmas break.

AUD/GBP is trading in the region of 0.5459, AUD/EUR is trading in the region of 0.6512 and AUD/USD is trading in the region of 0.8916

New Zealand Dollar

During a quiet Australasian session the ‘Kiwi’ was trading in a tight range against the majority of its peers. A lack of economic data for New Zealand may limit the currency’s movement in the days ahead, although Friday’s Chinese industrial profits data will be of interest.

NZD/GBP is trading in the region of 0.5002, NZD/EUR is trading in the region of 0.5980 and NZD/USD is trading in the region of 0.8181

Canadian Dollar

Better-than-forecast Canadian growth data helped the ‘Loonie’ advance on its peers yesterday. The commodity-driven currency largely retained gains overnight but could experience additional movement as a result of today’s US durable goods orders report.

CAD/GBP is trading in the region of 0.5766, CAD/EUR is trading in the region of 0.6881 and CAD/USD is trading in the region of 0.9414

These exchange rates were correct as of 9:30 am

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