Exchange Rates Today: Sterling Stronger against the Euro, ‘Aussie’ Dollar

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Pound Sterling

Ahead of the release of the Confederation of British Industry’s reported sales data the Pound was trending in a stronger position against the Euro and was close to a six-month high against the Australian Dollar. The Pound to US Dollar exchange rate drifted slightly lower as the ‘Greenback’ was supported by upbeat US housing data. Today Bank of England Governor Mark Carney is scheduled to speak in Wales. Any hawkish comments from the BoE chief could bolster the Pound.

US Dollar

Wednesday’s unexpectedly strong US New Home Sales report helped the US Dollar broadly rally. New Home Sales jumped by 18%, considerably more than the 4.4% gain anticipated. Today a range of US reports could lend the ‘Greenback’ additional support, including Markit’s Services and Composite PMI’s. Although the nation’s Durable Goods Orders data is expected to register a -18.0% decline, the drop would follow an unusually strong 22.6% surge in July.

Euro

Yesterday’s less-than-impressive German Business Confidence measures caused the Euro to lose steam against several of its most-traded rivals. The common currency was trending close to a two-year low against the Pound and lost over 0.4% against the US Dollar. The Euro was little changed after European Central Bank President Mario Draghi intimated that the current geopolitical uncertainties could weigh on growth in the 18-nation currency bloc.

Australian Dollar

The Australian Dollar continued trending weakly against a host of its peers after Reserve Bank of Australia Governor Glenn Stevens spoke at the Melbourne Economic Forum. Stevens asserted that the central bank is considering introducing measures to restrict home loans and help cool the overheating domestic housing market.

New Zealand Dollar

After the Reserve Bank of New Zealand hinted that it might intervene in the currency market in order to cause depreciation in the ‘Kiwi’ the South Pacific currency broadly softened. The New Zealand Dollar lost over 1.30% against the Pound and slumped by over 0.5% against the majority of its other currency counterparts.

Canadian Dollar

After a Bank of Canada official indicated that the Canadian Dollar could potentially fall further in the near term the commodity-driven currency fluctuated against the Pound and US Dollar. A lack of economic reports for Canada means that any additional ‘Loonie’ movement is likely to be the result of global economic developments.

South African Rand

Prior to the publication of South Africa’s Producer Price Index the Rand was trending lower as the emerging-market asset came under pressure as a result of concerns that the situation in Syria could escalate further. It would take an encouraging PPI to help the Rand recover losses.

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

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