Exchange Rates Today: The Pound is on course to hit a weekly low against the US Dollar

money_poundsPound Sterling

The Pound is on course to hit a weekly low against the US Dollar after falling to a 13-month low on Thursday. Sterling is also softer against the majority of its peers after the Bank of England made no changes to monetary policy. The Pound fell after the BoE monetary policy committee voted in favour of leaving UK interest rates unchanged at the record low level of 0.5%. Sterling could fall further if the latest UK balance of trade data comes in below forecast.

US Dollar

The US Dollar is set to make its biggest weekly gain in 16 months against a basket of currencies as investors raise their bets that the day’s eagerly anticipated Nonfarm payrolls data will show that US employers created more jobs in October than the year’s average. The nation’s unemployment rate is also expected to decline to 5.8%.

The Euro

The Euro regained some lost ground but remains close to a two-year low against the US Dollar as comments made by European Central Bank President Mario Draghi weighed. The Euro fell sharply on Thursday after Mr Draghi said that the ECB would soon start to purchase asset backed securities in an effort to support the flagging Eurozone economy.

 Australian Dollar

The ‘Aussie’ regained lost ground against most rivals after the Reserve Bank of Australia reaffirmed that it will leave its monetary policy unchanged for a sustained period. The bank said its policy would remain accommodative due to the recent fall in the value of the ‘Aussie’. Traders shrugged off disappointing construction growth data.

 New Zealand Dollar

The New Zealand Dollar is on track to make a weekly decline against the US Dollar due to the strengthening of the US currency and expectations that the afternoon’s US jobs data will create further support for the ‘Greenback’.

Canadian Dollar

The ‘Loonie’ remains softer against the Pound and other peers as weak commodity prices and a disappointing Ivey PMI report weighed upon the currency. Further declines are forecast if the latest domestic employment data disappoints.

South African Rand

The Rand dipped to its weakest level in over four weeks against the US Dollar on Friday following a credit rating downgrade by Moody’s in the previous session. Moody’s cited South Africa’s poor prospects for medium-term growth and rising public debt as the main reasons for cutting Africa’s most advanced economy’s credit rating to Baa2 from Baa1.

Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.

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