Yesterday the Pound softened against the US Dollar and Euro as the UK surprise index dropped to a three-week low. This morning however Sterling was able to recover losses against its currency rivals prior to the release of UK inflation data. Investors are expecting that UK inflation held above the Bank of England’s 2 per cent target at the close of last year.
GBP/EUR is trading in the region of 1.1997 and GBP/USD is trading in the region of 1.6422
The ‘Greenback’ edged away from a one-week high against the Pound and slipped slightly against the Euro ahead of today’s influential US advance retail sales report. It’s been forecast that US retail sales climbed 0.1 per cent in December following November’s 0.7 per cent gain. If the result surprises in the same way as last Friday’s US non-farm payrolls report the US Dollar could soften.
USD/GBP is trading in the region of 0.6090 and USD/EUR is trading in the region of 0.7306
While the Euro was little changed against its currency counterparts following the release of Germany’s wholesale price index, Euro movement can be expected thanks to Eurozone industrial production data, scheduled for release at 10:00 GMT.
EUR/GBP is trading in the region of 0.8336 and EUR/USD is trading in the region of 1.3689
Overnight the Australian Dollar slipped against the ‘Buck’ and moved away from its recent one-month high before the publication of Chinese loan data. The ‘Aussie’ also declined against its New Zealand counterpart before the close of local trading.
AUD/GBP is trading in the region of 0.5500, AUD/EUR is trading in the region of 0.6612 and AUD/USD is trading in the region of 0.9027
New Zealand Dollar
After weeks of modest movement the ‘Kiwi’ made notable gains against the Australian and US Dollars during Australasian trading as a measure of business confidence for New Zealand leapt to a twenty-year high.
NZD/GBP is trading in the region of 0.5110, NZD/EUR is trading in the region of 0.6134 and NZD/USD is trading in the region of 0.8394
‘Loonie’ weakness persisted overnight and the CAD/USD pairing remains close to a four-year low. If today’s advance US retail sales figures show a stronger-than-expected gain the Canadian Dollar could post further declines.
CAD/GBP is trading in the region of 0.5593, CAD/EUR is trading in the region of 0.6709 and CAD/USD is trading in the region of 0.9184
These exchange rates were correct as of 9:25 am