With the Bank of England minutes scheduled for publication later today the Pound began the European session softer against the Euro and US Dollar. If the minutes show that the Monetary Policy Committee were united in their decision to maintain asset purchases and hold rates Sterling could recover some ground as trade continues.
GBP/EUR is trading in the region of 1.1747 and GBP/USD is trading in the region of 1.6153
Yesterday the ‘Greenback’ plummeted against the majority of its most traded peers as the US non-farm payrolls report revealed that the world’s largest economy added less positions than expected in September. Today’s mortgage applications and house price data could inspire further US Dollar movement.
USD/GBP is trading in the region of 0.6191 and USD/EUR is trading in the region of 0.7272
Overnight the Euro consolidated gains against the Pound and pushed above 1.37 against the US Dollar as a poor non-farm payrolls report coupled with the expectation that consumer confidence in the Eurozone improved lent support to the common currency. Economists have forecast that a gauge of sentiment rose from -14.9 to -14.5 and if this estimation proves accurate the Euro could strengthen.
EUR/GBP is trading in the region of 0.8512 and EUR/USD is trading in the region of 1.3751
Although the ‘Aussie’ advanced to a four-week high against the ‘Kiwi’ as domestic inflation accelerated more rapidly than forecast, the South Pacific asset struggled against several of its other most traded peers as Chinese stocks plummeted.
AUD/GBP is trading in the region of 0.5971, AUD/EUR is trading in the region of 0.7013 and AUD/USD is trading in the region of 0.9642
New Zealand Dollar
Demand for the New Zealand Dollar was dampened during the Australasian session as Chinese stocks tumbled. Meanwhile, a technical indicator warning against the rapidity of the ‘Kiwi’s recent rally saw the currency fall against all of its most traded rivals.
NZD/GBP is trading in the region of 0.5202, NZD/EUR is trading in the region of 0.6106 and NZD/USD is trading in the region of 0.8396
In the aftermath of yesterday’s less-than-impressive US non-farm payrolls report the Canadian Dollar strengthened to a one-month high against the ‘Buck’. With the Bank of Canada due to deliver its rate decision later today, additional ‘Loonie’ volatility is likely.
CAD/GBP is trading in the region of 0.5993, CAD/EUR is trading in the region of 0.7041 and CAD/USD is trading in the region of 0.9681
These exchange rates were correct as of 9:25 am