Exchange Rate Outlook: Euro weakened by German GDP

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Pound Sterling

The Pound posted widespread advances yesterday as UK inflation slowed unexpectedly. However, the British asset shed gains against the US Dollar this morning before the Governor of the Bank of England delivers a testimony regarding domestic financial stability. The Pound held on to gains against the Euro as German growth data fell short of estimates.

GBP/EUR is trading in the region of 1.2036 and GBP/USD is trading in the region of 1.6400

US Dollar

Yesterday’s modestly stronger-than-forecast US retail sales report supported the US Dollar overnight. The safe haven asset continues to enjoy a bullish relationship with several of its major rivals ahead of the release of the Federal Reserve Beige book report.

USD/GBP is trading in the region of 0.6098 and USD/EUR is trading in the region of 0.7341

Euro

Early into the European session the Euro softened against the ‘Buck’ and Pound. While a report revealed that Germany enjoyed comparatively strong growth in 2013, the 0.4 per cent expansion was less than expected. Some additional Euro movement could occur in response to today’s Eurozone trade balance data.

EUR/GBP is trading in the region of 0.8309 and EUR/USD is trading in the region of 1.3627

Australian Dollar

With Australian employment data looming the Australian Dollar was holding on to losses recorded against its US counterpart during the North American session. The currency was little affected by a report showing that Australian new motor vehicle sales increased by 1.7 per cent.

AUD/GBP is trading in the region of 0.5434, AUD/EUR is trading in the region of 0.6531 and AUD/USD is trading in the region of 0.8895

New Zealand Dollar

During Australasian trading the New Zealand Dollar was trading in a tight range against the majority of its most traded counterparts. The ‘Kiwi’ had previously softened against a boosted Pound and US Dollar but remained stronger against the ‘Aussie’.

NZD/GBP is trading in the region of 0.5092, NZD/EUR is trading in the region of 0.6115 and NZD/USD is trading in the region of 0.8341

Canadian Dollar

In a quiet news day for Canada, the nation’s currency held close to a four-year low against the US Dollar. Better-than-forecast US retail sales highlighted the disparity between the two neighbouring economies and left the ‘Loonie’ struggling.

CAD/GBP is trading in the region of 0.5557, CAD/EUR is trading in the region of 0.6688 and CAD/USD is trading in the region of 0.9113

These exchange rates were correct as of 9:30 am

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.