Exchange Rate Outlook: Pound Recovers after UK Growth Data

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Pound Sterling

The Pound softened overnight as a measure of UK consumer confidence unexpectedly declined. However, Sterling may recoup losses in the hours ahead as a result of stronger-than-anticipated UK growth figures.

GBP/EUR is trading in the region of 1.1979 and GBP/USD is trading in the region of 1.6338

US Dollar

The US Dollar’s bullish relationship with the Yen continued overnight as the Bank of Japan delivered its policy statement and the safe-haven Asian currency tumbled. While today’s US growth data may inspire ‘Greenback’ movement, the Fed’s decision to taper stimulus is likely to bolster the currency over the weekend.

USD/GBP is trading in the region of 0.6120 and USD/EUR is trading in the region of 0.7334

Euro

After the European Union’s AAA credit rating was stripped by Standards & Poor’s the Euro floundered and lost ground against peers like the US Dollar. Although the common currency received some support from the news that German consumer confidence advanced, the Euro is likely to end the week trading lower unless today’s Eurozone consumer sentiment measure surprises to the upside.

EUR/GBP is trading in the region of 0.8347 and EUR/USD is trading in the region of 1.3636

Australian Dollar

Speculation that the Reserve Bank of Australia may have to adjust rates in the New Year left the ‘Aussie’ languishing against the majority of its currency counterparts as local trading came to an end. The Australian Dollar is heading towards five-day declines against several of its rivals.

AUD/GBP is trading in the region of 0.5424, AUD/EUR is trading in the region of 0.6502 and AUD/USD is trading in the region of 0.8865

New Zealand Dollar

Although a report showed that credit card spending in New Zealand surged in November, the ‘Kiwi’ continued to struggle against a broadly-stronger US Dollar. The commodity-driven currency was able to advance on the Euro however as European developments wore on the asset.

NZD/GBP is trading in the region of 0.5016, NZD/EUR is trading in the region of 0.6011 and NZD/USD is trading in the region of 0.8178

Canadian Dollar

With the price of crude oil climbing and Canadian inflation figures due for release later today the ‘Loonie’ was able to edge away from a three-year low against the US Dollar and recover ground against several of its main rivals.

CAD/GBP is trading in the region of 0.5732, CAD/EUR is trading in the region of 0.6865 and CAD/USD is trading in the region of 0.9364

These exchange rates were correct as of 9:40 am

 

 

 

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