As the European session got underway the Pound clawed back losses against the US Dollar and drifted away from yesterday’s lows against the Euro. If today’s UK employment figures confirm that the nation’s unemployment rate held at a four-year low in October Sterling could strengthen as trading continues.
GBP/EUR is trading in the region of 1.1830 and GBP/USD is trading in the region of 1.6282
‘Greenback’ movement may be slightly stilted ahead of the Federal Open Market Committee’s policy announcement, but today’s US building permits and housing starts reports could have an impact on the US Dollar in the hours ahead.
USD/GBP is trading in the region of 0.6141 and USD/EUR is trading in the region of 0.7265
Unexpectedly strong ZEW economic sentiment surveys for Germany and the Eurozone lifted the Euro during European trading. The common currency approached a two-year high against the US Dollar and a six-week high against the Pound before German IFO current assessment and expectations reports were released. Although the measure of the current situation dropped, the gauge of expectations rose by more-than-forecast.
EUR/GBP is trading in the region of 0.8455 and EUR/USD is trading in the region of 1.3766
After languishing close to multi-year lows against both its Australian and US counterparts, the Australian Dollar was able to recover some ground overnight as the Governor of the Reserve Bank of Australia dampened expectations for an additional rate cut.
AUD/GBP is trading in the region of 0.5473, AUD/EUR is trading in the region of 0.6475 and AUD/USD is trading in the region of 0.8911
New Zealand Dollar
During local trading the ‘Kiwi’ dipped against several of its major peers and shed gains against the ‘Aussie’ as New Zealand’s current account deficit widened by more than expected. However, the commodity-driven currency was later supported by encouraging activity outlook and business confidence reports.
NZD/GBP is trading in the region of 0.5066, NZD/EUR is trading in the region of 0.6001 and NZD/USD is trading in the region of 0.8279
While the Canadian Dollar edged up slightly against the Pound as a domestic manufacturing shipments report showed unexpected improvement, the ‘Loonie’s bearish relationship with the US Dollar continued ahead of today’s FOMC announcement.
CAD/GBP is trading in the region of 0.5792, CAD/EUR is trading in the region of 0.6863 and CAD/USD is trading in the region of 0.9447
These exchange rates were correct as of 9:25 am