Exchange Rate Outlook: GBP/EUR Recovers Ground Before Carney Speech

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Pound Sterling

Having edged higher against the Euro prior to Bank of England Governor Mark Carney’s speech, the Pound was little changed as the European session opened. The British asset was also holding steady against the US Dollar ahead of tomorrow’s UK industrial production data.

GBP/EUR is trading in the region of 1.1930 and GBP/USD is trading in the region of 1.6354

US Dollar

Last week’s upbeat US economic data added to the case for the Federal Reserve tapering stimulus in December and saw the ‘Greenback’ strengthen against the majority of its peers. The US asset retained gains against the Yen overnight as GDP data for Japan showed slower-than-forecast growth.

USD/GBP is trading in the region of 0.6110 and USD/EUR is trading in the region of 0.7296

Euro

In the wake of the European Central Bank’s decision to refrain from introducing additional stimulus measures the Euro broadly strengthened. The common currency advanced on rivals like the US Dollar and was able to consolidate gains this morning as reports showed that Germany’s trade surplus narrowed due to increased imports. As the Eurozone is a major German trading partner the news boosted the currency bloc’s export outlook. Further Euro movement may occur as a result of German industrial production figures.

EUR/GBP is trading in the region of 0.8380 and EUR/USD is trading in the region of 1.3706

Australian Dollar

While the Australian Dollar was able to advance on its rivals in response to stronger-than-expected Chinese export data, gains against its US counterpart were limited as positive US data highlighted the divergence between the Australian and US growth outlooks.

AUD/GBP is trading in the region of 0.5554, AUD/EUR is trading in the region of 0.6626 and AUD/USD is trading in the region of 0.9077

New Zealand Dollar

During Australasian trading the ‘Kiwi’ jumped as China posted a larger-than-expected trade surplus and domestic manufacturing activity climbed. With the Reserve Bank of New Zealand due to deliver its rate decision this week the South Pacific currency can expect to experience volatility.

NZD/GBP is trading in the region of 0.5068, NZD/EUR is trading in the region of 0.6053 and NZD/USD is trading in the region of 0.8284

Canadian Dollar

Last week the ‘Loonie’ sank to a three-year low against its US counterpart as the Bank of Canada left policy unadjusted. While the commodity-driven currency was a little buoyed by Canada’s surprisingly strong employment figures on Friday the ‘Greenback’ continues to outstrip its neighbour. Today’s Canadian housing starts figures could result in Canadian Dollar movement.

CAD/GBP is trading in the region of 0.5739, CAD/EUR is trading in the region of 0.6847 and CAD/USD is trading in the region of 0.9383

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.