Prior to the publication of a new orders report for the UK Sterling approached a three-week high against a broadly softening US Dollar but was little changed against the Euro. Economists expect a gauge of UK business optimism to advance from 7 in September to 17 in October. If accurate this result could also lend the Pound support as the local session progresses.
GBP/EUR is trading in the region of 1.1737 and GBP/USD is trading in the region of 1.6180
With mortgage application and house price data failing to live up to forecasts and economists expecting today’s US initial jobless claims report to reveal additional economic concerns, the ‘Greenback’ was trapped in a bearish relationship with the majority of its peers overnight. The US Dollar plunged to a two-year low against the Euro and hit a three-week low against the Pound.
USD/GBP is trading in the region of 0.6169 and USD/EUR is trading in the region of 0.7255
While the Euro put in an impressive performance against the US Dollar overnight, soaring to a two-year high, the common currency experienced fluctuations during the European session as services PMI for Germany, France and the Eurozone disappointed expectations.
EUR/GBP is trading in the region of 0.8518 and EUR/USD is trading in the region of 1.3786
With a report revealing more impressive-than-forecast manufacturing expansion in China ‘Aussie’ rallied overnight. The decreasing odds of the Federal Reserve tapering stimulus in the near future also lent support to higher-risk currencies like the Australian Dollar. If today’s US jobless claims figures reveal the increase in benefit applications expected the ‘Aussie’ could extend its advance against the ‘Greenback’ before the weekend.
AUD/GBP is trading in the region of 0.5962, AUD/EUR is trading in the region of 0.6991 and AUD/USD is trading in the region of 0.9656
New Zealand Dollar
Positive export and trade balance data for New Zealand, coupled with supportive news from China, lifted the ‘Kiwi’ during Australasian trading and left the South Pacific asset higher against the majority of its most traded peers.
NZD/GBP is trading in the region of 0.5182, NZD/EUR is trading in the region of 0.6092 and NZD/USD is trading in the region of 0.8384
Over the course of the North American session the ‘Loonie’ posted its steepest decline against the US Dollar for four-months as the Bank of Canada adopted a slightly different stance regarding rate increases following its policy meeting.
CAD/GBP is trading in the region of 0.5952, CAD/EUR is trading in the region of 0.6986 and CAD/USD is trading in the region of 0.9631
These exchange rates were correct as of 9:30 am