Exchange Rate Outlook: UK GDP & US Jobless Claims Data Set to Dominate

uk_money

Pound Sterling

The Pound is little moved against the US Dollar and Euro as investors await the release of data which is expected to show that the UK economy expanded at its fastest pace in three years in the third quarter.

GBP/EUR is trading in the region of 1.1938 and GBP/USD is trading in the region of 1.6221

US Dollar

The US Dollar is under pressure against the Euro and Pound following yesterdays mixed data releases. US consumer confidence fell unexpectedly to a seven month low in November whilst the number of new building permits issued soared to the highest level in five years. The mixed U.S. economic data did little to soften expectations that the Federal Reserve will start to taper its stimulus program at one of its upcoming policy meetings.

USD/GBP is trading in the region of 0.6164 and USD/EUR is trading in the region of 0.7359

Euro

The Euro made gains against the safe haven Yen and Swiss Franc after Germany finally managed to agree to the formation of a coalition government. Further gains are unlikely after data out of France and Spain came in below forecasts.

EUR/GBP is trading in the region of 0.8376 and EUR/USD is trading in the region of 1.3587

Australian Dollar

The ‘Aussie’ continued its decline against most of its peers as traders take their most bearish stance on the currency in two months after the Reserve Bank of Australia once more warned that the currency is overvalued.

AUD/GBP is trading in the region of 0.5617, AUD/EUR is trading in the region of 0.6706 and AUD/USD is trading in the region of 0.9111

New Zealand Dollar

The ‘Kiwi’ is holding near a five-year high against its Australian relation as traders favour the smaller Oceanic nation. Data released in Asian trading showed that New Zealand’s trade deficit was at its smallest since the mid 1990’s due to the strong demand for the nation’s major export of dairy goods.

NZD/GBP is trading in the region of 0.5051, NZD/EUR is trading in the region of 0.6031 and NZD/USD is trading in the region of 0.8194

Canadian Dollar

The Canadian Dollar weakened for a third day against the US Dollar as oil prices continue to soften in the wake of a deal reached between global powers and Iran.

CAD/GBP is trading in the region of 0.5842, CAD/EUR is trading in the region of 0.6975 and CAD/USD is trading in the region of 0.9477

Richard Martin
This post was written by
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.