Pound Sterling
The Pound fell to a four-week low against the Euro as investors await the release of the latest policy meeting minutes from the Bank of England. Against the US Dollar, Sterling tumbled to its lowest level in more than six-weeks after data showed that UK inflation slowed more than economists had been predicting. The currency could find minor support today if the latest retail sales data shows that sales increased in April.
GBP/EUR is trading in the region of 1.1706 and GBP/USD is trading in the region of 1.5146
US Dollar
The ‘Greenback’ weakened against the Euro for a third consecutive day as investors rise their bets that Federal Reserve Chairman Ben Bernanke will tell congress that the pace of the Bank’s monetary stimulus programme should be maintained. Against the Pound the Dollar hit a seven week high after the UK’s weaker than expected inflation created a surge of Dollar buying.
USD/GBP is trading in the region of 0.6602 and USD/EUR is trading in the region of 0.7732
Euro
The Euro strengthened to a four-week high against the Pound and continued to climb against the US Dollar. Expectations that the Federal Reserve may maintain its current level of quantitative easing in spite of recent positive US data have caused the ‘Greenback’ to soften against the majority if its peers this week and the UK inflation data caused Sterling to fall.
The Euro was little affected by Vodafone’s declaration that ‘severe macroeconomic weakness’ across Southern Europe (particularly a slump in demand in Spain, Italy, Greece and Portugal) has been ‘very challenging’ and has hit the company hard.
EUR/GBP is trading in the region of 0.8540 and EUR/USD is trading in the region of 1.293
Australian Dollar
The ‘Aussie’ is lower against the US Dollar due to the release of weaker than expected consumer sentiment data and a decline in commodity prices. The next movement for the currency depends on the outcome of Federal Reserve Chairman Ben Bernanke’s speech to congress.
AUD/GBP is trading in the region of 0.6458, AUD/EUR is trading in the region of 0.7564 and AUD/USD is trading in the region of 0.9782
New Zealand Dollar
The ‘Kiwi’ edged lower against the US Dollar due to investors holding off from making any decisions ahead of Federal Reserve chairman Ben Bernanke’s Congressional testimony, where he’s expected to give his view on whether the US central bank will start slowing its quantitative easing programme.
NZD/GBP is trading in the region of 0.5381, NZD/EUR is trading in the region of 0.6302 and NZD/USD is trading in the region of 0.8150
Canadian Dollar
The ‘Loonie’ fell to a two-month low against the US Dollar due to speculation that the Federal Reserve will choose to reduce its quantitative easing measures. The currency fell against all of its most traded peers as crude oil declined for the first time in our days.
CAD/GBP is trading in the region of 0.6426, CAD/EUR is trading in the region of 0.7527 and CAD/USD is trading in the region of 0.9734
These exchange rates were correct as of 9:05 am
