With New Year hangovers subsiding and markets returning to normal the Pound was able to advance on the Euro ahead of today’s domestic manufacturing report. Gains were limited however as Spanish and Italian manufacturing reports exceeded estimates. Sterling was little changed against the US Dollar.
GBP/EUR is trading in the region of 1.2077 and GBP/USD is trading in the region of 1.6566
A better-than-expected Conference Board confidence index boosted the US economic outlook and supported the ‘Greenback’ earlier in the week. Later today initial jobless claims and ISM manufacturing reports will be published. If the results exceed forecasts the ‘Greenback’ could advance further on peers like the Yen.
USD/GBP is trading in the region of 0.6038 and USD/EUR is trading in the region of 0.7287
Early into European trading the Euro was supported by upbeat manufacturing reports for Spain and Italy. Although data then showed that manufacturing in France contracted by more-than-forecast – with PMI dropping from 48.4 to 47.0 – figures for Germany and the Eurozone showed improvement.
EUR/GBP is trading in the region of 0.8280 and EUR/USD is trading in the region of 1.3718
As measures of Chinese manufacturing drooped in December Australia’s trade prospects were dampened and the ‘Aussie’ slid against several of its major rivals. A disappointing AiG performance of manufacturing index for Australia also weighed on the South Pacific asset during the local session.
AUD/GBP is trading in the region of 0.5369, AUD/EUR is trading in the region of 0.6475 and AUD/USD is trading in the region of 0.8886
New Zealand Dollar
Ahead of tomorrow’s Chinese non-manufacturing report the ‘Kiwi’ was feeling the pressure against its US and UK peers. Less-than-impressive manufacturing reports from China lowered the New Zealand Dollar’s appeal while the prospect of positive economic reports elsewhere boosted currencies like the Pound and ‘Buck’.
NZD/GBP is trading in the region of 0.4948, NZD/EUR is trading in the region of 0.5974 and NZD/USD is trading in the region of 0.8187
The ‘Loonie’s bearish trend continued overnight and the commodity-driven asset tumbled by the most for almost six years against the US Dollar. Indications that the US economic recovery will continue to surpass that seen in Canada are likely to keep the CAD/USD pairing trading lower for the foreseeable future.
CAD/GBP is trading in the region of 0.5667, CAD/EUR is trading in the region of 0.6843 and CAD/USD is trading in the region of 0.9391
These exchange rates were correct as of 9:10 am