‘Greenback’ held on to advances

Pound Sterling

As trading began today Sterling retained yesterday’s levels, rising less than 0.1 per cent against the US Dollar and hovering 0.6 per cent away from a six-week high against the Euro. Fluctuations in the Pound are likely to follow today’s inflation and unemployment reports. Analysts have predicted that the unemployment rate will remain at its lowest level for over twelve months in the third-quarter; if this forecast proves accurate it could steady confidence in UK economic recovery and benefit the Pound.

The Pound is presently trading against the Euro in the region of 1.2477 and is trading against the US Dollar in the region of 1.5879

US Dollar

Although continuing European concerns allowed the ‘Greenback’ to hold on to recent gains advances were tempered by a lack of significant US news. With a stream of influential data scheduled for release today – including retail sales and PPI figures – movement is far more likely to occur. Three sets of statistics are forecast to come in lower than those recorded for the previous month and if this outcome occurs faith in US economic recovery could be shaken to the detriment of the US Dollar.

The US Dollar is presently trading against the Pound in the region of 0.6297 and is trading against the Euro in the region of 0.7856

Euro

Further uncertainty regarding a Greek bailout and a worse-than-forecast economic sentiment figure for Germany dampened investor appetite for risk and kept the Euro trading lower against safe-haven rivals the US Dollar and Japanese Yen. Today industry experts will be focusing on the Eurozone industrial production figures for September and watching out for any developments in Greece.

The Euro is presently trading against the Pound in the region of 0.8014 and is trading against the US Dollar in the region of 1.2726

Australian Dollar

After reports showed a 19-month high in Australian consumer confidence the ‘Aussie’ was able to brush an 8-week record against the ‘Kiwi’ and hit its best level against the US Dollar for a week. Despite this, lessened risk appetite kept demand for the Australian Dollar limited. If today offers further indications of economic deterioration in the Eurozone the ‘Aussie’ could continue to be negatively affected. Tomorrow fluctuations in the South Pacific currency will probably result from Australian Consumer Inflation Expectation figures for November.

The Australian Dollar is presently trading against the Pound in the region of 0.6577, is trading against the Euro in the region of 0.8208 and is trading against the US Dollar in the region of 1.0443

New Zealand Dollar

An unforeseen decline in New Zealand’s retail sales pushed the currency to a two-month low against its Australian rival. Despite economists predicting a 0.4 per cent increase for third-quarter retail sales the figure actually declined by 0.4 per cent. The ‘Kiwi’ was also affected by negative developments in the Eurozone. The risk aversion triggered by Greek uncertainty and German economic concerns kept the New Zealand Dollar trading lower against the majority of its currency rivals.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5142, is trading against the Euro in the region of 0.6417 and is trading against the US Dollar in the region of 0.8166

Canadian Dollar

The Canadian Dollar ended trade lower than it began after it was revealed that the federal budget won’t be balanced until 2016-17, a year later than predicted formerly. After Finance Minister Jim Flaherty commented that the federal deficit will rise by around 5 billion Dollar this year the ‘Loonie’ posted declines against several of its competitors. Tomorrow investors will be focusing on Canadian existing home sales and the Bank of Canada review.

The Canadian Dollar is presently trading against the Pound in the region of 0.6295, is trading against the Euro in the region of 0.7852 and is trading against the US Dollar in the region of 0.9996

 

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.