Pound Sterling
Against major currency rivals the Euro and US Dollar the Pound was little changed before the release of a report which was forecast to show an increase in UK home purchase bank lending. Sterling may continue to experience minimal movement today as a lack of further economic news for the UK means that volatility in the British currency will probably result from developments in the US.
The Pound is presently trading against the Euro in the region of 1.2180 and is trading against the US Dollar in the region of 1.6164.
US Dollar
The US Dollar declined against several of its higher-yielding currency rivals yesterday as a bout of risk-taking was triggered by positive US housing data and optimistic developments regarding the US fiscal cliff negotiations. Today volatility in the ‘Greenback’ can be expected as the federal budget discussions continue and key pieces of US economic data, including Consumer Confidence figures, are released.
The US Dollar is presently trading against the Pound in the region of 0.6188 and is trading against the Euro in the region of 0.7536.
Euro
With the outlook for the world’s largest economy improved by optimistic US housing data higher-risk currencies, like the Euro, were able to climb against their safe-haven counterparts. The common currency achieved a high of 1.3253 against its US rival. Fiscal cliff discussions are the most likely cause of movement in the Euro today and investors will be looking ahead to tomorrow’s 3Q GDP figures for France.
The Euro is presently trading against the Pound in the region of 0.8209 and is trading against the US Dollar in the region of 1.3269.
Australian Dollar
As the US budget negotiations prepare to take centre stage once more the Australian Dollar posted declines against all of its main peers. The ‘Aussie’ is now in line to record its most notable monthly drop against the US Dollar for four months. In the hours ahead fluctuations in the Australian Dollar could be triggered by developments in the US.
The Australian Dollar is presently trading against the Pound in the region of 0.6417, is trading against the Euro in the region of 0.7818 and is trading against the US Dollar in the region of 1.0376.
New Zealand Dollar
This morning the New Zealand Dollar is little changed from yesterday’s month low against the US Dollar. A lack of economic news from the South Pacific will keep movement in the ‘Kiwi’ minimal today, however volatility could follow US data releases (including Unemployment calms) and any news regarding the ‘fiscal cliff’.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5092, is trading against the Euro in the region of 0.6191 and is trading against the US Dollar in the region of 0.8216.
Canadian Dollar
With the markets reopened following the Christmas break the Canadian Dollar will be hoping to continue its success from Monday, where it climbed 0.22 of a US cent against its neighbouring currency. The most likely cause of ‘Loonie’ movement today will be the ongoing fiscal cliff negotiations in the US.
The Canadian Dollar is presently trading against the Pound in the region of 0.6238, is trading against the Euro in the region of 0.7603 and is trading against the US Dollar in the region of 1.0087.
