Exchange Rates Today: Sterling remains at multi-month lows against the US Dollar

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Pound Sterling

The Pound slowed its decline against its major peers but remains at multi-month lows against the US Dollar and fell below the 1.25 level against the Euro.

The currency received some support from a report released by the British Retail Consortium (BRC) which showed that retail sales accelerated sharply last month. Sterling could claw back more ground if the day’s Balance of Trade, Manufacturing and Industrial Production data comes in positively. Any gains will be muted however as concerns over the upcoming Scottish referendum are still weighing heavily.

US Dollar

The US Dollar advanced to its best level in six years against the Japanese Yen and strengthened against the majority of its most traded peers as speculation increased that this week’s US data releases will put more pressure on the Federal Reserve to raise interest rates next year.

Euro

The Euro slowed its rally against the Pound and slipped against the US Dollar after a report released early in the session showed that France’s trade deficit widened more than forecast in July. The deficit increased to $5.5 billion, worse than the $5 billion figure forecast by economists. Concerns over the wider Eurozone economy are continuing to weigh heavily upon the single currency.

Australian Dollar

The ‘Aussie’ slumped to a 3-week low against the US Dollar and eased against Sterling after a domestic business confidence report disappointed economists. The National Australia Bank’s confidence index fell to 8 from 11 in August. Data also showed that home loans in Australia rose 0.3% in July, disappointing expectations for an increase of 1.0%.

New Zealand Dollar

The New Zealand Dollar is holding close to its lowest level in 7-months against the US Dollar and eased against the Pound as investors raised their bets that the US Federal Reserve will increase interest rates sooner than expected. Against its Australian relation, the ‘Kiwi’ advanced due to disappointing ‘Aussie’ business confidence data.

Canadian Dollar

The ‘Loonie’ softened as economists grew concerned over yesterday’s Chinese import data and the further decline of commodity prices. Crude oil, Canada’s biggest export, fell below the $100 per barrel on Monday. Weaker import demand from China also weighed, as the Asian nation is a major trade partner of Canada.

South African Rand

The Rand fell along with most of the world’s emerging market currencies as concerns grew over the European Union’s decision to introduce new economic sanctions against Russia. The 28-member bloc is being deliberately vague about when the sanctions will come into force to allow time to assess the implementation of a ceasefire agreed on Friday. Investors are concerned that further sanctions will have a negative impact upon the global economy.

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

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