German election result helps Euro climb

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Pound Sterling

With this week’s major UK news (domestic GDP figures) still days away Pound movement may be limited. However, overnight global developments led to Sterling declining against the Euro but strengthening modestly against the US Dollar. Economists are expecting Thursday’s growth report to confirm that the UK economy expanded by 0.7 per cent in the second quarter.

GBP/EUR is trading in the region of 1.1860 and GBP/USD is trading in the region of 1.6040

US Dollar

During the Australasian session, mounting speculation regarding the likelihood of the Federal Reserve tapering stimulus in October saw the Euro, Yen and Pound gain on the US Dollar. The ‘Greenback’ could experience fluctuations in the hours ahead if today’s US Markit PMI meets or exceeds the 54.0 estimate.

USD/GBP is trading in the region of 0.6233 and USD/EUR is trading in the region of 0.7388

Euro

A strong Federal election result for Angela Merkel helped the Euro consolidate gains against its peers ahead of the release of services/manufacturing PMI for Germany and the Eurozone. As the data was a bit of a mixed bag, common currency movement is likely.

EUR/GBP is trading in the region of 0.8432 and EUR/USD is trading in the region of 1.3531

Australian Dollar

As the local session progressed, surprisingly strong Chinese manufacturing data saw the ‘Aussie’ post modest gains against its US counterpart. With Australian data a little thin on the ground this week ‘Aussie’ volatility may occur in response to global developments.

AUD/GBP is trading in the region of 0.5876, AUD/EUR is trading in the region of 0.6964 and AUD/USD is trading in the region of 0.9421

New Zealand Dollar

While encouraging Chinese manufacturing figures helped the ‘Aussie’ climb, Fed inspired risk aversion prevented the New Zealand Dollar advancing in line with its neighbouring currency. Tomorrow’s trade balance data could trigger a notable response from the ‘Kiwi’.

NZD/GBP is trading in the region of 0.5217, NZD/EUR is trading in the region of 0.6184 and NZD/USD is trading in the region of 0.8376

Canadian Dollar

After achieving a three-month high against its US counterpart last week the ‘Loonie’ largely retained gains over the weekend. The commodity-driven asset could fluctuate ahead of tomorrow’s retail sales report.

CAD/GBP is trading in the region of 0.6060, CAD/EUR is trading in the region of 0.7187 and CAD/USD is trading in the region of 0.9721

These exchange rates were correct as of 09:15 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.