At the close of last week the Pound ended a strong few days by posting five-day gains against peers including the US Dollar and Euro. Sterling was able to achieve a seven-month high against the ‘Greenback’ and a multi-month high against the Euro. A lack of UK news may limit Pound movement in the hours ahead, but investors will also be looking to tomorrow’s UK producer and consumer price indexes.
GBP/EUR is trading in the region of 1.1928 and GBP/USD is trading in the region of 1.5942
News that one of the main contenders to take on the position of Governor of the Federal Reserve has dropped out of the running caused the US Dollar to broadly soften over the weekend. As Summers adopts a more pro-QE tapering stance than his main rival the development has lessened the odds of a rapid decline in US stimulus. North American data to watch out for today includes US industrial and manufacturing production figures.
USD/GBP is trading in the region of 0.6273 and USD/EUR is trading in the region of 0.7484
The Euro was able to hit a two-week high against its broadly softening US rival over the weekend, but with Eurozone consumer price figures due out at 10:00 GMT the common currency may fluctuate in the hours ahead.
EUR/GBP is trading in the region of 0.8381 and EUR/USD is trading in the region of 1.3361
The declining odds of the Federal Reserve tapering stimulus helped the ‘Aussie’ soar to a 3-month high against its US counterpart during the local session. However, with the publication of minutes from the recent Reserve Bank of Australia policy meeting taking place tomorrow Australian Dollar gains could prove short lived.
AUD/GBP is trading in the region of 0.5866, AUD/EUR is trading in the region of 0.6996 and AUD/USD is trading in the region of 0.9352
New Zealand Dollar
US Federal Reserve easing speculation, coupled with America and Russia reaching an agreement regarding Syria’s chemical weapons, boosted higher risk assets like the ‘Kiwi’ overnight. The New Zealand Dollar climbed against peers like the ‘Greenback’ despite New Zealand’s performance of services index dropping to 53.2 in August from 58.2 in July.
NZD/GBP is trading in the region of 0.5141, NZD/EUR is trading in the region of 0.6136 and NZD/USD is trading in the region of 0.8204
With the Syria threat dimming in the wake of the agreement formed between Russia and the US the ‘Loonie’ broadly strengthened. The Canadian Dollar then extended gains against its US counterpart as the favourite contender for the role of Governor of the Federal Reserve bowed out of the race. Although today’s Canadian existing home sales figure will be of interest, US manufacturing and industrial production figures could also be responsible for Canadian Dollar movement.
CAD/GBP is trading in the region of 0.6087, CAD/EUR is trading in the region of 0.7275 and CAD/USD is trading in the region of 0.9721
These exchange rates were correct as of 09:25 am