Fluctuations in the British currency can be expected

money_assortedPound Sterling

With the Bank of England scheduled to deliver its highly anticipated inflation report this morning, the Pound softened slightly against peers including the US Dollar and Euro. Fluctuations in the British currency can be expected to result from the BoE’s remarks regarding forward guidance for interest rates.

GBP/EUR is trading in the region of 1.1524 and GBP/USD is trading in the region of 1.5305

US Dollar

Speculation surrounding the Bank of Japan’s ongoing policy meeting saw the US Dollar decline against the Yen overnight. However, the ‘Greenback’ advanced on the Pound ahead of the publication of the Bank of England’s inflation report and recouped recent losses against the Australian Dollar. Today’s US consumer credit data could inspire additional movement in the safe-haven currency.

USD/GBP is trading in the region of 0.6529 and USD/EUR is trading in the region of 0.7532

Euro

Yesterday’s bullish German factory orders data supported the common currency during the local session and the Euro continues to trade in the region of a 7-week high against its US rival ahead of the release of German industrial production figures.

EUR/GBP is trading in the region of 0.8678 and EUR/USD is trading in the region of 1.3281

Australian Dollar

Although the ‘Aussie’ surged against its peers in the wake of the Reserve Bank of Australia’s rate decision, the South Pacific asset shed gains during the local session on the expectation that tomorrow’s domestic employment report will show that the nation’s unemployment rate hit its highest level for four years. Losses were slightly tempered by the news that Australian home loans climbed by more than forecast in June.

AUD/GBP is trading in the region of 0.5844, AUD/EUR is trading in the region of 0.6733 and AUD/USD is trading in the region of 0.8933

New Zealand Dollar

After a positive milk powder auction lessened fears regarding a Chinese ban on contaminated dairy products from New Zealand, the ‘Kiwi’ was able to retain gains against the US Dollar. However, the New Zealand Dollar dipped against a bullish Yen.

NZD/GBP is trading in the region of 0.5157, NZD/EUR is trading in the region of 0.5936 and NZD/USD is trading in the region of 0.7903

Canadian Dollar

Stronger-than-anticipated trade balance data for the US saw the ‘Loonie’ decline modestly against the ‘Greenback’. However, positive trade deficit data for Canada helped to limit the Canadian Dollar’s downward movement. Today’s domestic building permits data and Ivey purchasing managers index can be expected to inspire ‘Loonie’ fluctuations.

CAD/GBP is trading in the region of 0.6279, CAD/EUR is trading in the region of 0.7236 and CAD/USD is trading in the region of 0.9608

These exchange rates were correct as of 9:20 am

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.