GBP at five week high against EUR

Pound Sterling

Although the Pound was able to climb to a five week high against the Euro on the back of disappointing developments in the Eurozone, the expectation of the UK trade deficit narrowing in September pushed it towards a second weekly decline against the US Dollar. Sterling losses were tempered however by the Bank of England’s decision to hold off on further bond purchases. Movement in the Pound could occur today if September’s Trade Balance proves to be narrower than expected.

The Pound is presently trading against the Euro in the region of 1.2519 and is trading against the US Dollar in the region of 1.5985

US Dollar

Fears over the impending US fiscal cliff encouraged investors to turn their attention to safe-haven assets, allowing the ‘Greenback’ to climb against several of its peers. However, the US Dollar did record minor losses against the Japanese Yen – investor’s other low-risk currency favourite. Movement in the US Dollar is likely to be caused today as a result of October’s US Import/Export Prices, Prelim Michigan Sentiment for November and Wholesale Inventories for September.

The US Dollar is presently trading against the Pound in the region of 0.6257 and is trading against the Euro in the region of 0.7843

Euro

Despite the Greek government braving the public backlash and approving a new round of harsh austerity measures European Union Finance Ministers have announced they will hold off on the decision to give the struggling nation its next round of aid. After news broke that the decision could be delayed for ‘weeks’ the Euro sunk to a two-month low against the US Dollar and a five-week low against the British Pound. This development combined with comments made by European Central Bank President Mario Draghi regarding weak economic growth in the Eurozone and the central bank shifting its focus from Greece could push the common currency lower in the days ahead.

The Euro is presently trading against the Pound in the region of 0.7979 and is trading against the US Dollar in the region of 1.274

Australian Dollar

After China released better-than-forecast industrial production and retail sales figures the export prospects for Australia were boosted, causing the ‘Aussie’ to rise. Earlier declines in the currency – triggered by the Reserve Bank of Australia reducing its growth predictions for 2013 – were erased and the Australian Dollar advanced 0.2 per cent against the US Dollar. The ‘Aussie’ is now poised for a 0.9 per cent gain this week.

The Australian Dollar is presently trading against the Pound in the region of 0.6515, is trading against the Euro in the region of 0.8168 and is trading against the US Dollar in the region of 1.0406

New Zealand Dollar

Despite being slightly boosted by better-than-expected Chinese economic data the New Zealand Dollar is inching towards a 1.7 per cent weekly decline against its Australian rival. With the local labour market showing marked signs of deterioration and the Reserve Bank of Australia deciding to hold interest rates the ‘Kiwi’ was unable to hold its own against its South Pacific peer. The New Zealand Dollar also notched up losses against the Japanese Yen, Euro, British Pound and US Dollar, and is now headed for a 1 per cent decline against the latter currency.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5107, is trading against the Euro in the region of 0.6400 and is trading against the US Dollar in the region of 0.8155

Canadian Dollar

After Eurozone leaders announced that they would delay the decision on the next round of Greek aid risk appetite dropped causing the Canadian Dollar to post notable losses. Most significantly the ‘Loonie’ fell below parity with its US counterpart for the first time in a week after declining 0.4 per cent. Confidence in the Canadian Dollar received some support from comments made by Bank of Canada Governor Mark Carney. He stared that if the US fails to avoid the fiscal cliff planned for next year he is prepared to act to protect his country’s economy.

The Canadian Dollar is presently trading against the Pound in the region of 0.6264, is trading against the Euro in the region of 0.7840 and is trading against the US Dollar in the region of 1.0010

 

Laura Barrett
This post was written by
Laura moved from the US to the UK several years ago. As a corporate sales executive for a leading foreign exchange company, Laura has expert knowledge of currency movements and market trends and is able to offer specialist guidance regarding making a trade at the most lucrative time and protecting transactions from currency risk.