‘Greenback’ close to sixth monthly decline against Euro

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Pound Sterling

After weakening in recent days the Pound was finally able to advance on the Euro following positive sentiment and housing sector reports. UK consumer confidence and house prices increased in January which led to Sterling gaining on the majority of its counterparts.  However, with influential Eurozone and US data still on the cards for today additional Sterling movement can be expected.

The Pound is presently trading against the Euro in the region of 1.1658 and is trading against the US Dollar in the region of 1.5821

US Dollar

Disappointing 4Q GDP figures for the US and better-than-forecast developments in the Eurozone pushed the ‘Greenback’ towards a sixth monthly decline against the Euro yesterday. After the Federal Reserve announced its decision to continue buying Treasuries and mortgage bonds the US Dollar fell close to a 13-month low against the common currency and posted losses against the Japanese Yen. If today’s US jobless claims offer additional indications of economic hardship in the US the ‘Greenback’ could slide further.

The US Dollar is presently trading against the Pound in the region of 0.6324 and is trading against the Euro in the region of 0.7376

Euro

Yesterday the Euro strengthened to 86.07 pence, the highest level achieved since December 2011. Although this morning’s positive UK consumer confidence and housing data triggered a slight downward correction in the paring, the common currency could soon gain again as the upbeat data for the currency bloc keeps coming. Already today a report has shown an unexpected decline in German unemployment. If German CPI figures also impress the Euro could continue to march upwards.

The Euro is presently trading against the Pound in the region of 0.8575 and is trading against the US Dollar in the region of 1.3550

Australian Dollar

Yesterday declining Asian stocks tempered investor appetite for higher-yielding assets, like the Australian Dollar, causing the South Pacific currency to drop against the majority of its competitors. The ‘Aussie’ also lost out against the New Zealand Dollar as the latter currency strengthened following the Reserve Bank of New Zealand’s positive commentary. Whilst global economic developments, including an influential Chinese manufacturing report, are likely to cause ‘Aussie’ fluctuations in the hours ahead the Australian performance of manufacturing index could also trigger movement.

The Australian Dollar is presently trading against the Pound in the region of 0.6573, is trading against the Euro in the region of 0.7672 and is trading against the US Dollar in the region of 1.0394

New Zealand Dollar

The ‘Kiwi’ was able to strengthen against its Australian counterpart following the Reserve Bank of New Zealand’s decision to keep the benchmark interest rate unaltered at 2.5 per cent. The central bank’s governor also stated that he expects the economy to recover in the near future. The New Zealand Dollar was lent further support from the expectation that tomorrow’s Chinese manufacturing report will show expansion, boosting the prospects for the world’s second largest economy and one of New Zealand’s main trading partners.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5282, is trading against the Euro in the region of 0.6163 and is trading against the US Dollar in the region of 0.8359

Canadian Dollar

Yesterday optimistic developments in the Eurozone, disappointing US news and home-grown concerns led to the Canadian Dollar falling against several of its major rivals, notably shedding 0.5 per cent against the Euro. Today the ‘Loonie’ is likely to experience significant movement following the release of Canadian GDP figures. US jobless claims data is also of interest.

The Canadian Dollar is presently trading against the Pound in the region of 0.6307, is trading against the Euro in the region of 0.7353 and is trading against the US Dollar in the region of 0.9973

 

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.