GBP/EUR Heading for Five-Day Gain

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Pound Sterling

While the Pound did soften yesterday as UK retail sales unexpectedly declined, the British currency is still heading for a weekly gain against the Euro. This week Sterling has been supported by the expectation that the Bank of England may increase interest rates earlier than expected. With UK news thin on the ground today Pound movement may be limited.

GBP/EUR is trading in the region of 1.1954 and GBP/USD is trading in the region of 1.6081

US Dollar

As Janet Yellen, candidate for the position of chairman of the Federal Reserve, stressed the importance of supporting the US economy as it recovers the ‘Greenback’ posted widespread declines. However, after Yellen admitted that quantitative easing couldn’t go on indefinitely the US Dollar recovered losses. Today’s US industrial/manufacturing reports could inspire ‘Greenback’ fluctuations before the weekend.

USD/GBP is trading in the region of 0.6222 and USD/EUR is trading in the region of 0.7436

Euro

With yesterday’s less-than-impressive Eurozone growth reports still weighing heavily on the Euro, the common currency begins the day softer against the majority of its most traded peers. Further Euro volatility is likely to occur in response to Eurozone inflation data, due out at 10:00 GMT.

EUR/GBP is trading in the region of 0.8371 and EUR/USD is trading in the region of 1.3451

Australian Dollar

Bets that major central banks will maintain accommodative fiscal policy for the foreseeable future supported higher-risk assets overnight and the ‘Aussie’ strengthened. The South Pacific asset posted a five-day gain against the Yen and clawed back losses against the US Dollar.

AUD/GBP is trading in the region of 0.5806, AUD/EUR is trading in the region of 0.6931 and AUD/USD is trading in the region of 0.9341

New Zealand Dollar

After rallying during Australasian trading the New Zealand Dollar is in line to record a 1.5 per cent advance against the safe-haven Yen and a 0.4 per cent gain on the ‘Greenback’. However, if today’s US industrial/manufacturing reports show improvement the New Zealand Dollar could trim its advance.

NZD/GBP is trading in the region of 0.5155, NZD/EUR is trading in the region of 0.6164 and NZD/USD is trading in the region of 0.8288

Canadian Dollar

With industry experts speculating that the Canadian Dollar’s recent rally was overdone the ‘Loonie’ slumped to a 10-week low against its US counterpart overnight. Today’s domestic manufacturing/existing home sales reports could help the commodity-driven asset recover losses before the weekend.

CAD/GBP is trading in the region of 0.5938, CAD/EUR is trading in the region of 0.7097 and CAD/USD is trading in the region of 0.9558

These exchange rates were correct as of 9:05 am

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.