Exchange Rates Today: US Dollar Advances to One-Week Highs

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Pound Sterling

The Pound was little moved against its major peers as economists awaited the release of the latest UK Retail Sales figures. The currency softened on Wednesday after the Bank of England minutes showed that there was no change in its policy. The minutes revealed that policy makers voted 7-2 in favour of leaving interest rates unchanged at 0.5%. The Pound weakened as the minutes were more dovish than expected, with policymakers highlighting concerns over the Eurozone and wider economy.

US Dollar

The US Dollar advanced to a one-week high against several rivals as data showed that the cost of living in the US rose unexpectedly. The data supported the currency as it highlights the strength of the world’s largest economy amid a slowdown in global growth. Further gains for the Dollar are possible if the latest Jobless Claims data and Manufacturing PMI data comes in positively.

Euro

The Euro was trading close to one-week lows against the US Dollar and other peers as economists look ahead to the Eurozone’s flash PMI data. A report released earlier in the European session showed that Germany’s Manufacturing PMI clawed back into expansion territory in October but the nation’s Services PMI came in softer than forecast. Data out of France continues to disappoint.

Australian Dollar

The ‘Aussie’ made gains against several peers after a flash PMI Manufacturing report out of China came in better than forecast. The positive reading supported the Australian Dollar as China is Australia’s largest trading partner. Against the US Dollar, the ‘Aussie’ advanced to a six-day high.

New Zealand Dollar

The New Zealand Dollar fell sharply against the US Dollar and other currency counterparts after domestic data showed that inflation fell. Statistics New Zealand reported earlier that consumer price inflation rose 0.3% in the third quarter, confounding expectations for an increase of 0.5% after a 0.3% advance in the three months to June.

Canadian Dollar

The ‘Loonie’ hit a one-week high against its US relation and edged higher against the Pound after it found support when the Bank of Canada removed the word ‘neutral’ from its policy statement, increasing bets that the bank could be considering raising interest rates.

South African Rand

The Rand softened against its peers after South Africa’s finance minister warned that the South African economy is not making enough progress in tackling poverty and creating jobs. The minister also downgraded his growth forecasts for the 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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