GBP at three month high against USD

Pound Sterling

Yesterday Sterling was able to achieve a three month high against its American counterpart. However, as trade began today the Pound experienced little movement against the Euro and US Dollar prior to the release of a report which is expected to show a rebound in UK retail sales in November. Fluctuations in the British currency could also occur as a result of German producer prices and US gross domestic product figures.

The Pound is presently trading against the Euro in the region of 1.2294 and is trading against the US Dollar in the region of 1.6266

US Dollar

The ‘Greenback’ posted significant losses yesterday after better-than-forecast German economic data encouraged risk taking in the marketplace. Notably, the US Dollar sunk to a three month low against the British Pound. Today some significant economic news from the US, including US GDP figures and initial jobless claims, is likely to cause volatility in the American currency.

The US Dollar is presently trading against the Pound in the region of 0.6147 and is trading against the Euro in the region of 0.7568

Euro

More optimistic-than-expected German Ifo Business Climate statistics allowed the Euro to broadly strengthen, recording gains against several of its main peers. Movement in the common currency could occur today in response to German producer prices as well as key US economic indicators and any developments in the ongoing US fiscal cliff saga.

The Euro is presently trading against the Pound in the region of 0.8134 and is trading against the US Dollar in the region of 1.3228

Australian Dollar

Continuing concerns regarding the imminent US fiscal cliff left the ‘Aussie’ unable to break away from its recent run of losses and falling for a third consecutive day. Demand for the South Pacific currency was also dampened by comments made by the Australian Treasurer. The Australian Dollar continued to trade lower after Wayne Swan asserted that a budget surplus for the 2012-2013 year was unlikely. Of particular interest today are US data releases and developments in the US budget negotiations.

The Australian Dollar is presently trading against the Pound in the region of 0.6451, is trading against the Euro in the region of 0.7930 and is trading against the US Dollar in the region of 1.0494

New Zealand Dollar

The New Zealand Dollar recorded significant losses against its American counterpart after figures showed that in the third quarter the South Pacific nation’s gross domestic product expanded by less than hoped. The ‘Kiwi’ sunk to a one week low against the ‘Greenback’ despite the safe-haven currency broadly softening. The New Zealand Dollar also fell against the Japanese Yen. Today a lack of economic news for the nation means that fluctuations in the currency will result from data releases for the US and Eurozone.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5143, is trading against the Euro in the region of 0.6298 and is trading against the US Dollar in the region of 0.8357

Canadian Dollar

With the shadow of the US fiscal cliff failing to lift the Canadian Dollar experienced modest declines against several of its most traded rivals. The all-important US budget negotiations hit a wall yesterday while disappointing US housing data also caused the commodity-driven ‘Loonie’ to decline. In the hours ahead investors will be paying attention to Canadian retail sales for October.

The Canadian Dollar is presently trading against the Pound in the region of 0.6221, is trading against the Euro in the region of 0.7651 and is trading against the US Dollar in the region of 1.0119

 

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.