‘Greenback’ broadly strengthens


Pound Sterling

Prior to the release of UK CBI data the Pound was trading in the region of an 11-week low against the US Dollar. The Confederation of British Industry report is expected to show that UK retail sales grew this month. Sterling was little changed against the Euro, although that pairing could experience movement in response to Eurozone news over the course of the day.

GBP/EUR is trading in the region of 1.1701 and GBP/USD is trading in the region of 1.5058

US Dollar

Better than expected US consumer confidence and home price data allowed the ‘Greenback’ to broadly strengthen during local trade. The safe-haven currency did decline slightly against the Japanese Yen however, after Bank of Japan Governor Haruhiko Kuroda made comments relating to the importance of a stable financial system. The next piece of particularly influential US data, the nation’s first quarter GDP price index, is scheduled for release tomorrow.

USD/GBP is trading in the region of 0.6646 and USD/EUR is trading in the region of 0.7779


The Euro could experience volatility in the hours ahead as a result of several pieces of influential news for the Eurozone. Already this morning a report has shown far greater than predicted German unemployment change. Later today the EC OECD economic outlook and EU policy recommendations will be of particular interest, as will German CPI figures.

EUR/GBP is trading in the region of 0.8546 and EUR/USD is trading in the region of 1.2870

Australian Dollar

Additional signs that America’s economic recovery is gathering momentum caused US Treasury benchmark yields to rise, Australian bonds to fall and the 10-year rate to climb to an 8-week high. Consequently, the ‘Aussie’ hit its lowest level against the US Dollar since October 2011 and slumped to an over four-year low against the Kiwi during local trade. The South Pacific currency was also affected by reports showing a 2 per cent decline in the value of total construction work and a modest 0.2 per cent gain in an Australian index of leading economic indicators.

AUD/GBP is trading in the region of 0.6351, AUD/EUR is trading in the region of 0.7425 and AUD/USD is trading in the region of 0.9549

New Zealand Dollar

As US consumer confidence and house prices improved by more than anticipated the odds of the Federal Reserve tapering stimulus in the months ahead increased and the US Dollar turned bullish. Consequently, the ‘Kiwi’ declined against both the ‘Greenback’ and the Yen, although it was able to post a notable gain against its Australian counterpart.

NZD/GBP is trading in the region of 0.5365, NZD/EUR is trading in the region of 0.6289 and NZD/USD is trading in the region of 0.8073

Canadian Dollar

With the Bank of Canada’s rate decision looming, the Canadian Dollar closed local trade having fallen against its US rival following the publication of more positive than anticipated US economic data. The ‘Loonie’ is in line to experience volatility today in response to the tone of the central bank’s statement.

CAD/GBP is trading in the region of 0.6387, CAD/EUR is trading in the region of 0.7473 and CAD/USD is trading in the region of 0.9619

These exchange rates were correct as of 9:00 am

Richard Martin
This post was written by
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.