Exchange Rate Outlook: EUR/USD Recovers Ground

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Pound Sterling

If today’s UK services PMI surprises to the upside, rounding off a hat-trick of unexpectedly strong results, the Pound could extend recent gains against peers like the US Dollar and Euro. The British asset began the local session holding steady against its biggest rivals.

GBP/EUR is trading in the region of 1.2053 and GBP/USD is trading in the region of 1.6371

US Dollar

Yesterday’s lack of significant economic news for the US gave the Yen a chance to recoup losses against its North American rival overnight. The ‘Greenback’ also slipped slightly against the Euro ahead of today’s US housing, trade balance and non-manufacturing data.

USD/GBP is trading in the region of 0.6103 and USD/EUR is trading in the region of 0.7367

Euro

The Euro could be in for a rocky ride today as a flood of Eurozone data is released. While final services PMI for Germany and the Eurozone will be of interest Euro movement is more likely to be triggered by GDP and retail sales figures for the 17-nation currency bloc. Investors will also be looking ahead to tomorrow’s European Central Bank rate decision.

EUR/GBP is trading in the region of 0.8295 and EUR/USD is trading in the region of 1.3580

Australian Dollar

While the Australian Dollar received some support as a domestic performance of services index showed improvement, a GDP later report confirmed that Australian economic growth slowed in the third quarter and the ‘Aussie’ tumbled against all of its main rivals. The AUD/USD pairing was also feeling the pressure ahead of Friday’s US non-farm payrolls report.

AUD/GBP is trading in the region of 0.5512, AUD/EUR is trading in the region of 0.6646 and AUD/USD is trading in the region of 0.9036

New Zealand Dollar

Overnight the ‘Kiwi’ surged against the ‘Aussie’ as the latter currency plummeted in response to lacklustre Australian growth data. However, the New Zealand Dollar did fall against its US and British peers as building value data for the smaller South Pacific nation fell short of estimates.

NZD/GBP is trading in the region of 0.4995, NZD/EUR is trading in the region of 0.6030 and NZD/USD is trading in the region of 0.8177

Canadian Dollar

After hitting a three-year low against its US counterpart during local trading the ‘Loonie’ largely retained losses into the European session. Later today the Bank of Canada is scheduled to deliver its rate decision. If the central bank once again signals that rate increases will be delayed the Canadian Dollar could fall further still.

CAD/GBP is trading in the region of 0.5725, CAD/EUR is trading in the region of 0.6902 and CAD/USD is trading in the region of 0.9371

These exchange rates were correct as of 9:10 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.