GBP Advances as UK Data Tops Estimates

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Pound Sterling

Although BRC sales data came in at a year-on-year gain of 0.8 per cent instead of the 1.0 per cent forecast, the Pound continued to trade strongly against the Euro having gained on its common currency rival yesterday in response to stronger-than-anticipated UK construction data. With UK services PMI also smashing estimates additional Sterling gains are likely.

GBP/EUR is trading in the region of 1.1839 and GBP/USD is trading in the region of 1.5964

US Dollar

While the prospect of the Federal Reserve tapering stimulus before the close of the year was dented by yesterday’s slightly disappointing US factory orders figures, the ‘Greenback’ advanced on a broadly softening Australian Dollar overnight. The US Dollar did slip against the Yen however as economists forecast that today’s US ISM non-manufacturing data will show a decline.

USD/GBP is trading in the region of 0.6264 and USD/EUR is trading in the region of 0.7410

Euro

The Euro came under pressure as the local session opened and investors considered the likelihood of the European Central Bank introducing additional easing measures to support the Eurozone’s fragile return to growth. The common currency softened against almost all of its most traded peers before the release of economic growth forecasts for the Eurozone.

EUR/GBP is trading in the region of 0.8447 and EUR/USD is trading in the region of 1.3485

Australian Dollar

The ‘Aussie’ shed recent gains against rivals like the US Dollar and Euro as the Governor of the Reserve Bank of Australia asserted that the currency’s exchange rate is ‘uncomfortably high’. While the central bank opted to hold rates at previous levels the Australian Dollar still posted losses against all of its currency peers.

AUD/GBP is trading in the region of 0.5940, AUD/EUR is trading in the region of 0.7032 and AUD/USD is trading in the region of 0.9482

New Zealand Dollar

With Asian stocks reversing earlier gains the New Zealand Dollar broadly softened. Although an increase in China’s HSBC/Markit services PMI supported New Zealand’s trade prospects during the local session the ‘Kiwi’ slid ahead of today’s domestic employment data.

NZD/GBP is trading in the region of 0.5181, NZD/EUR is trading in the region of 0.6129 and NZD/USD is trading in the region of 0.8283

Canadian Dollar

As crude oil slipped to its lowest level for four months the ‘Loonie’ weakened against the majority of its currency counterparts. Although Canadian data is lacking today, US news is likely to inspire further movement in the commodity-driven currency.

CAD/GBP is trading in the region of 0.5995, CAD/EUR is trading in the region of 0.7098 and CAD/USD is trading in the region of 0.9571

These exchange rates were correct as of 9:25 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.