Exchange Rate Outlook: Pound set for fourth weekly gain

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Pound Sterling

The Pound is on track to make a fourth-weekly gain against the US Dollar and other peers after data released early in the session showed that house prices rose more than forecast on a yearly basis whilst on a monthly basis they softened slightly. Investors are also expecting a report due for release by the Bank of England will show that the number of mortgages approved in October increased.

GBP/EUR is trading in the region of 1.2001 and GBP/USD is trading in the region of 1.6332

US Dollar

The US Dollar is on track to a weekly decline against the Pound and is unlikely to see much volatility today to the US markets being closed for a second day for the Thanksgiving holiday period. The ‘Greenback’ did  edge down against the Japanese yen, but remains near six-month highs after the release of mixed Japanese data and amid growing expectations that the Bank of Japan will keep or even enhance its monetary stimulus policy.

USD/GBP is trading in the region of 0.6122 and USD/EUR is trading in the region of 0.7348

Euro

The Euro is on course to make a third monthly gain against the US Dollar after the currency found some support from news that credit ratings agency Standard & Poor’s raised Spain’s credit rating from negative to stable. Further gains are expected to be limited after German retail sales came in below forecasts and consumer spending fell in France.

EUR/GBP is trading in the region of 0.8332 and EUR/USD is trading in the region of 1.3608

Australian Dollar

The ‘Aussie’ is on course to make a sixth weekly decline and is trading close to a two-and-a-half year low against the US Dollar and remains close to a three year low against the Pound. The currency received a further knock after the Australian Treasurer rejected a US company’s offer to takeover one of Australia’s biggest crop handling companies. Treasurer Joe Hockey turned down the bid saying it wasn’t in the national interest.

AUD/GBP is trading in the region of 0.5577, AUD/EUR is trading in the region of 0.6693 and AUD/USD is trading in the region of 0.9108

New Zealand Dollar

The ‘Kiwi’ followed its Australian relation downward against its peers due to the thin trading due to the U.S. Thanksgiving holiday. The currency has been weaker for most of the week to the commodity based currencies coming under pressure and as investors increased their bets that the Reserve Bank of New Zealand will raise interest rates in January.

NZD/GBP is trading in the region of 0.4973, NZD/EUR is trading in the region of 0.5969 and NZD/USD is trading in the region of 0.8123

Canadian Dollar

The Canadian Dollar firmed as data showed that Canada’s broadest measure of trade continued to run at a deficit in the third quarter. Statistics Canada reported that the nation’s current account deficit decreased by C$500 million to C$15.5 billion in the third quarter. That was still about $1 billion more than economists expected.

CAD/GBP is trading in the region of 0.5782, CAD/EUR is trading in the region of 0.6940 and CAD/USD is trading in the region of 0.9444

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