Exchange Rate Outlook: GBP/EUR Consolidates Gains

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Pound Sterling

With the Bank of England due to publish its semi-annual Financial Stability Report, Sterling extended gains against the Euro and neared its strongest level for nearly ten months against the US Dollar. The Pound remains supported by yesterday’s UK growth data.

GBP/EUR is trading in the region of 1.2005 and GBP/USD is trading in the region of 1.6337

US Dollar

With economists expecting next week’s US manufacturing report to show a sixth month of expansion the ‘Greenback’ rallied to a six-month high against the Yen. During the North American session a report showing an unexpected decline in US jobless claims boosted the US Dollar. The safe-haven asset was also lifted by an encouraging University of Michigan Confidence index.

USD/GBP is trading in the region of 0.6120 and USD/EUR is trading in the region of 0.7351

Euro

Prior to the release of German employment data the Euro was slightly softer against the Pound. The common currency continued to weaken as unemployment in the Eurozone’s largest economy unexpectedly increased. As the European session progresses EUR/GBP movement may also be triggered by Eurozone consumer/economic confidence reports and German inflation figures.

EUR/GBP is trading in the region of 0.8328 and EUR/USD is trading in the region of 1.3603

Australian Dollar

As Australian business investment climbed unexpectedly the ‘Aussie’ was able to edge away from a two-month low against the US Dollar. However, the Australian Dollar largely retained declines against the Pound and could shed gains against the ‘Greenback’ if tomorrow’s Australian private sector credit report disappoints.

AUD/GBP is trading in the region of 0.5594, AUD/EUR is trading in the region of 0.6711 and AUD/USD is trading in the region of 0.9119

New Zealand Dollar

With a measure of business confidence in New Zealand surging from 53.2 in October to 60.5 in November, the ‘Kiwi’ strengthened against rivals like the US Dollar during Australasian trading. Before the weekend further New Zealand Dollar movement could be inspired by a domestic building permits report.

NZD/GBP is trading in the region of 0.4994, NZD/EUR is trading in the region of 0.5996 and NZD/USD is trading in the region of 0.8152

Canadian Dollar

A slump in the price of crude oil, a major Canadian export, saw the ‘Loonie’ soften against its US counterpart overnight. The commodity-driven Canadian Dollar approached its lowest level against the US Dollar since July ahead of today’s Canadian current account/industrial produce price/raw materials price data.

CAD/GBP is trading in the region of 0.5783, CAD/EUR is trading in the region of 0.6946 and CAD/USD is trading in the region of 0.9447

These exchange rates were correct as of 9:05 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.