Exchange Rate Outlook: EUR/USD Stronger after FOMC Minutes


Pound Sterling

Ahead of the Bank of England’s rate decision the Pound was close to a two-year high against the US Dollar. The British currency advanced on its peers yesterday thanks to the UK’s optimistic economic outlook and largely retained gains overnight.

GBP/EUR is trading in the region of 1.2089 and GBP/USD is trading in the region of 1.6455

US Dollar

In the aftermath of the publication of minutes from the Federal Open Market Committee’s latest policy meeting the US Dollar edged lower against rivals like the Pound and Euro. The minutes offered no further hints regarding the FOMC’s next policy step but did imply that the reduction of stimulus will continue in the short-term.

USD/GBP is trading in the region of 0.6075 and USD/EUR is trading in the region of 0.7349


Overnight the Euro recovered losses against the US Dollar and advanced on the Pound. According to Euro Exchange Rate News, if today’s Eurozone confidence reports show the improvement expected the Euro could climb further. However, a surprising rate decision from the ECB would trigger volatility.

EUR/GBP is trading in the region of 0.8272 and EUR/USD is trading in the region of 1.3609

Australian Dollar

With the FOMC minutes hinting that the Fed intends to continue tapering stimulus for the foreseeable future, the Australian Dollar drifted lower against its US counterpart. The South Pacific currency was broadly weaker despite a positive domestic retail sales report. Hopes that tomorrow’s US non-farm payrolls data will add to the case for tapering also weighed on the ‘Aussie’, as did the news that Chinese inflation slowed.

AUD/GBP is trading in the region of 0.5393, AUD/EUR is trading in the region of 0.6529 and AUD/USD is trading in the region of 0.8875

New Zealand Dollar

Australia’s stronger-than-forecast domestic retail sales report helped the ‘Aussie’ move away from a four-year low against the ‘Kiwi’ and the New Zealand Dollar softened against several of its other major rivals as inflation slowed in China. However, the commodity-driven currency did receive some support from the news that the level of building permits issued in New Zealand jumped in November.

NZD/GBP is trading in the region of 0.5017, NZD/EUR is trading in the region of 0.6074 and NZD/USD is trading in the region of 0.8266

Canadian Dollar

Overnight the ‘Loonie’ tumbled to its lowest level since 2010 as the FOMC policy minutes highlighted the diverging strategies adopted by the US and Canadian central banks. The Canadian Dollar drooped against the Pound and Euro ahead of today’s Canadian housing starts and housing price figures.

CAD/GBP is trading in the region of 0.5613, CAD/EUR is trading in the region of 0.6785 and CAD/USD is trading in the region of 0.9234

These exchange rates were correct as of 9:25 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.