Exchange Rates Today: The Pound made gains against the US Dollar

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Pound Sterling

The Pound made gains against the US Dollar as demand for the US currency softened due to last week’s publication of softer than forecast Nonfarm Payrolls data. With not much in the way of market moving data releases today we can expect relatively muted trading of the Pound. The main event for the UK currency comes on Wednesday with the publication of the latest UK unemployment data.

US Dollar

The US Dollar eased against its major peers for a second day as last week’s disappointing Nonfarm Payrolls data and a bout of investor profit taking weighed upon the currency.  The week promises to be a quiet one in terms of economic data releases, with Friday’s Retail Sales being the most influential report due for release.

The Euro

The Euro softened as traders looked ahead to the release of the latest Sentix Investor Sentiment report for the Eurozone. Economists are forecasting that sentiment declined from -13.7 to -14.94. Data out of Greece is also likely to disappoint. With tensions growing between Europe and Russia the Euro is likely to come under pressure from rising concerns over the standoff over Ukraine.

Australian Dollar

The ‘Aussie’ advanced against the US Dollar and Pound after the US currency was weighed upon by profit taking and softer than forecast Nonfarm Payrolls data. The ‘Aussie’ also strengthened on the back of Chinese data which showed that the world’s second largest economy (and Australia’s biggest trading partner) posted a larger than expected trade surplus.

New Zealand Dollar

The New Zealand Dollar followed its ‘Aussie’ relation higher as it received support from the positive Chinese data and the softness of the US Dollar.

Canadian Dollar

The ‘Loonie’ advanced strongly last week on the back of strong Canadian jobs figures. The Canadian unemployment rate fell to the lowest since November 2008, dropping sharply to 6.5% from 6.8% in September. The currency could also see movement later in the session due to the release of the latest Housing Starts data.

South African Rand

The Rand edged higher on Monday against the US Dollar and Pound due to the softer than forecast US data released last week. The currency is likely to experience volatility in a busy week of data releases. On Tuesday, Statistics Africa releases its monthly manufacturing output report and mining output is due on Thursday.

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