Exchange Rate Outlook: EUR/USD Extends Gains after PMI


Pound Sterling

Although a report confirmed that UK house prices fell in December, the Pound strengthened slightly against the US Dollar. Sterling remained softer against the Euro however, and extended declines against the common currency as German manufacturing PMI surprised to the upside.

GBP/EUR is trading in the region of 1.1876 and GBP/USD is trading in the region of 1.6326

US Dollar

Today’s US data, including preliminary PMI and industrial/manufacturing output reports, are likely to trigger movement in the ‘Buck’ during local trading. If the figures support the case for the Federal Reserve tapering stimulus when it meets this week the US Dollar could climb.

USD/GBP is trading in the region of 0.6123 and USD/EUR is trading in the region of 0.7271


Over the weekend the Euro recovered losses inspired by Thursday’s lacklustre industrial production report for the Eurozone. As the European session got underway, the Euro extended gains as a result of upbeat manufacturing data for Germany and the Eurozone. Today’s trade balance report for the 17-nation currency bloc could be the cause of further Euro movement.

EUR/GBP is trading in the region of 0.8422 and EUR/USD is trading in the region of 1.3751

Australian Dollar

Disappointing manufacturing data for China and pressure from officials for a weaker domestic currency left the ‘Aussie’ languishing against the majority of its most traded peers as South Pacific trading closed. Minutes from the latest Reserve Bank of Australia policy meeting are due for release tomorrow, and if they also advocate a softer Australian Dollar the currency’s fall may continue.

AUD/GBP is trading in the region of 0.5479, AUD/EUR is trading in the region of 0.6506 and AUD/USD is trading in the region of 0.8947

New Zealand Dollar

In a contrast to the Australian Dollar, the ‘Kiwi’ posted modest gains against several of its main peers during the local session. While China’s less-than-impressive manufacturing report dampened New Zealand’s trade prospects slightly, an encouraging domestic consumer confidence report helped the ‘Kiwi’ advance.

NZD/GBP is trading in the region of 0.5068, NZD/EUR is trading in the region of 0.6014 and NZD/USD is trading in the region of 0.8272

Canadian Dollar

As a new week of trading begins the Canadian Dollar is still close to a three-year low against its US counterpart. The ‘Loonie’ may be moved by today’s Canadian international securities transactions figures, but fluctuations are more likely to be occasioned by US news.

CAD/GBP is trading in the region of 0.5792, CAD/EUR is trading in the region of 0.6876 and CAD/USD is trading in the region of 0.9454

These exchange rates were correct as of 9:20 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.