Exchange Rates Today: Sterling Surges versus the New Zealand Dollar

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Pound Sterling

The Pound surged against the New Zealand Dollar after the South Pacific nation’s Prime Minister said that he wants the currency to be weaker. The Reserve Bank of New Zealand also said that its sales of the currency were the biggest seen in seven years. Sterling could see movement as the markets await the release of the latest Mortgage Lending and Bank of England Consumer Credit reports.

US Dollar

The US Dollar advanced to a six-year high against the Japanese Yen and maintained its multi-year highs against the Euro and other major peers as demand for the currency was supported by Friday’s data releases. Data showed that the US economy expanded at an annual rate of 4.6% in the second quarter of the year, the fastest pace seen in over two years.

Euro

The Euro remains weaker against its rivals as investors settle into a wait-and-see pattern ahead of Wednesday’s Eurozone inflation data and the outcome of the European Central Bank’s latest policy meeting. Another weak inflation report will likely weigh upon the currency and heighten worries over the threat of deflation taking root in the region. A soft inflation report will also raise expectations that the ECB could introduce a new quantitative easing programme in order to support the 18-nation economy.

Australian Dollar

The ‘Aussie’ fell to a fresh nine-month low against the US Dollar and dropped against the Pound as demand for the US currency continues to weigh upon commodity and emerging-market assets. The currency is forecast to continue to slide with some economists saying that even positive domestic data will not be enough to halt its decline.

New Zealand Dollar

The New Zealand Dollar tumbled sharply against the majority of its most traded peers following comments made by the nation’s Prime Minister. The currency also came under heavy pressure from a strong US Dollar.

Canadian Dollar

The ‘Loonie’ was little moved from recent lows against the US Dollar and other major peers due to a lack of domestic market moving economic data. Investors instead are in a holding pattern ahead of Tuesday’s GDP and PPI data releases. As such, the ‘Loonie’ will likely see movement because of data released elsewhere.

South African Rand

The Rand fell sharply against a number of peers as investors grew jittery over events in Hong Kong. A pro-democracy protest in the former British territory is threatening to disrupt normal business as a number of the region’s major financial branches were closed. Also weighing on the Rand is the increased demand for the US Dollar.

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

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