German survey increased Euro appeal

Pound Sterling

A more optimistic than expected German sentiment survey increased the appeal of the Euro, causing the Pound to drop against its common currency rival towards the close of trade yesterday. Sterling was able to gain on the US Dollar however as speculation that the Federal Reserve could propose forceful monetary easing at today’s policy meeting intensifies. UK jobless claims change data could trigger significant volatility this morning.

The Pound is presently trading against the Euro in the region of 1.2390 and is trading against the US Dollar in the region of 1.6113

US Dollar

After posting two days of declines the ‘Greenback’ remained lower against the Euro as investors await today’s Federal Reserve announcement. Industry experts are expecting the Fed to put forward an expansion of asset purchases and such a move typically weakens the US currency. Aside from this evening’s Federal Reserve press conference the main piece of economic news set to impact the US Dollar today is the FOMC projections of economy and Fed funds rate.

The US Dollar is presently trading against the Pound in the region of 0.6205 and is trading against the Euro in the region of 0.7691

Euro

Yesterday a German report showing a leap in investor confidence strengthened the Euro and the common currency was bolstered further as Greece met its bond buyback target. The Euro is continuing to trade higher against the majority of its main rivals ahead of this week’s gathering of European Union finance ministers and heads of government. Fluctuations in the common currency could occur today following the release of Eurozone Industrial Production figures for October.

The Euro is presently trading against the Pound in the region of 0.8073 and is trading against the US Dollar in the region of 1.3003

Australian Dollar

The increasing likelihood of the US Dollar dropping as a result of further momentary easing by the Federal Reserve allowed the Australian Dollar to achieve an over two-month high against the former currency. The ‘Aussie’ was also able to hit an eight month high against other safe-haven currency the Japanese Yen. Australian Dollar gains were tempered however after a report revealed the most significant drop in Australian consumer confidence for nine months. Today the Australian Dollar is likely to react to developments in the US, like the Federal announcement.

The Australian Dollar is presently trading against the Pound in the region of 0.6540, is trading against the Euro in the region of 0.8103 and is trading against the US Dollar in the region of 1.0537

New Zealand Dollar

After the highs achieved yesterday against its Australian rival the New Zealand Dollar continued its bullish trend, hitting a nine-month high against a broadly softening US Dollar and a three-year high against the Japanese Yen. The ‘Kiwi’ traded at 83.98 US cents, its strongest level since March 2nd. Movement in the New Zealand Dollar is most likely to result today from developments in the US.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5204, is trading against the Euro in the region of 0.6449 and is trading against the US Dollar in the region of 0.8402

Canadian Dollar

Positive trade data buoyed the ‘Loonie’ until the close of trade yesterday, allowing it to stay higher against a weakening US Dollar. Positive developments in the Eurozone also contributed to the commodity driven currency’s stronger position. Ahead of tomorrow’s release of the Canadian New Housing Price Index developments in the US will be the main cause of ‘Loonie’ volatility.

The Canadian Dollar is presently trading against the Pound in the region of 0.6296, is trading against the Euro in the region of 0.7803 and is trading against the US Dollar in the region of 1.0149

 

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.