GBP/EUR Little Changed Before BoE Minutes

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Pound Sterling

Last week the Pound achieved a three-week high against the US Dollar as the odds of the Federal Reserve tapering stimulus in December fell. Although a report published this morning has shown that UK house prices dropped this month, Sterling was holding steady against the Pound and Euro in a comparatively quiet news day.

GBP/EUR is trading in the region of 1.1955 and GBP/USD is trading in the region of 1.6133

US Dollar

Last week’s less-than-impressive US industrial/manufacturing reports added to the case for the Federal Reserve refraining from tapering quantitative easing until at least next spring. Consequently, the ‘Buck’ softened against the majority of its most traded peers before the weekend and continued to trade lower ahead of the release of the US NAHB housing market index.

USD/GBP is trading in the region of 0.6200 and USD/EUR is trading in the region of 0.7410

Euro

Economists are betting that the European Central Bank’s decision to deliver a surprise rate cut this month won’t be followed up by any further easing measures in December. As a result the Euro began the local session weaker against the Pound and little-changed against the US Dollar. Today’s trade balance figures for the Eurozone could trigger common currency movement.

EUR/GBP is trading in the region of 0.8366 and EUR/USD is trading in the region of 1.3495

Australian Dollar

The outlining of economic reforms in China boosted Australia’s trade prospects over the weekend and the ‘Aussie’ broadly strengthened. The commodity-driven asset leapt against peers like the US Dollar and Pound and could extend gains if the publication of minutes from the latest Reserve Bank of Australia meeting indicate that the central bank has no plans to cut rates at present.

AUD/GBP is trading in the region of 0.5833, AUD/EUR is trading in the region of 0.6974 and AUD/USD is trading in the region of 0.9411

New Zealand Dollar

The ‘Kiwi’ adopted a bullish attitude during Australasian trading as improving trade prospects in the South Pacific and climbing Asian stocks lent the asset support. The New Zealand Dollar was also supported as the New Zealand Performance of Services Index advanced from 56.4 to 58.2.

NZD/GBP is trading in the region of 0.5196, NZD/EUR is trading in the region of 0.6205 and NZD/USD is trading in the region of 0.8379

Canadian Dollar

Comments issued by Janet Yellen, the candidate for the position of chairman of the Federal Reserve, coupled with positive Canadian manufacturing sales data boosted the ‘Loonie’ on Friday. While the Canadian Dollar largely held on to gains over the weekend additional CAD movement could be limited ahead of domestic wholesale sales data.

CAD/GBP is trading in the region of 0.5948, CAD/EUR is trading in the region of 0.7110 and CAD/USD is trading in the region of 0.9591

These exchange rates were correct as of 9:10 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.