GBP/EUR Fluctuates Around Two-Month Low

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Pound Sterling

Ahead of the publication of a Lloyds survey of British businesses the Pound was close to a two-month low against the Euro and was softer against the US Dollar. With economists forecasting that this week’s UK manufacturing and house-price data will show a slowing in growth Sterling is likely to continue feeling the pressure over the next few days.

GBP/EUR is trading in the region of 1.1672 and GBP/USD is trading in the region of 1.6042

US Dollar

The upcoming Federal Reserve policy announcement supported the US Dollar overnight and helped the currency extend gains against the Yen, Canadian Dollar and Euro. Depending on what the central bank has to say about tapering easing the ‘Greenback’ is likely to experience considerable movement from 18:00 GMT.

USD/GBP is trading in the region of 0.6235 and USD/EUR is trading in the region of 0.7276

Euro

In a heavy news day for the Eurozone Euro fluctuations can be expected. If today’s consumer/industrial/services confidence data adds to the currency bloc’s improving economic outlook the Euro could rally against its rivals as the day continues.

EUR/GBP is trading in the region of 0.8565 and EUR/USD is trading in the region of 1.3737

Australian Dollar

After hitting its lowest level against the US Dollar for over two weeks, the ‘Aussie’ ended the local session little changed despite the release of data showing an unexpectedly strong surge in Australian new home sales. Comments issued by Reserve Bank of Australia Governor Glenn Stevens regarding the likelihood of a much weaker local currency continue to weigh on the Australian Dollar.

AUD/GBP is trading in the region of 0.5926, AUD/EUR is trading in the region of 0.6918 and AUD/USD is trading in the region of 0.9500

New Zealand Dollar

Following the surprise news that Moody’s Investors Service had contemplated cutting New Zealand’s AAA credit rating the ‘Kiwi’ slumped to a four-week low against its North American counterpart. Today’s rate decision from the Reserve Bank of New Zealand may cause further fluctuations in the South Pacific currency.

NZD/GBP is trading in the region of 0.5148, NZD/EUR is trading in the region of 0.6012 and NZD/USD is trading in the region of 0.8264

Canadian Dollar

In the aftermath of Bank of Canada Governor Stephen Poloz asserting that he revised the central bank’s policy statement on the basis of increasing inflation concerns, the ‘Loonie’ plummeted to a seven-week low against the US Dollar and lost ground against the majority of its other most traded peers. Although Canadian data is thin on the ground today, US news is likely to inspire notable market volatility.

CAD/GBP is trading in the region of 0.5964, CAD/EUR is trading in the region of 0.6962 and CAD/USD is trading in the region of 0.9566

These exchange rates were correct as of 9:00 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.