‘Greenback’ was able to approach a 3 ½ year high

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Pound Sterling

After posting three days of declines against the US Dollar the Pound was little changed against its American counterpart following the release of a report which showed that employment and business confidence in the UK improved in February. The British currency was also relatively unchanged against the Euro. A light news day means that investors will be looking ahead to tomorrow’s industrial production and manufacturing production figures.

The Pound is presently trading against the Euro in the region of 1.1484 and is trading against the US Dollar in the region of 1.4927

US Dollar

As confidence in US economic recovery was strengthened by a string of positive data releases the ‘Greenback’ was able to approach a 3 ½ year high against safe-haven rival the Japanese Yen. With a light news day ahead US Dollar movement is likely to occur in response to global economic developments.

The US Dollar is presently trading against the Pound in the region of 0.6700 and is trading against the Euro in the region of 0.7686

Euro

The Euro fell slightly against the British Pound after Fitch, one of the top three ratings agencies, lowered Italy’s sovereign credit rating to BBB+ (with a negative outlook) from A-. The inconclusive results of the Italian election were cited as a primary cause of the downgrade. The Euro also dipped against a broadly strengthening US Dollar and could fall further after the Italian economy was shown to have contracted by more-than-predicted in 2012. However, this negative news could be offset by a report which showed that German exports rose by more than expected in January.

The Euro is presently trading against the Pound in the region of 0.8707 and is trading against the US Dollar in the region of 1.2996

Australian Dollar

More disappointing Chinese data led to the ‘Aussie’ dropping against the majority of its main currency rivals during local trade. A notable slowdown in Chinese factory output follows last week’s worse than expected import data, and these knocks to the outlook of Australian exports ensured that the ‘Aussie’ extended losses against peers like the US Dollar. Tomorrow’s Australian business confidence figures could trigger additional movement in the Australian Dollar.

The Australian Dollar is presently trading against the Pound in the region of 0.6851, is trading against the Euro in the region of 0.7863 and is trading against the US Dollar in the region of 1.0227

New Zealand Dollar

The ‘Kiwi’ dropped to within touching distance of a two-month low against the ‘Greenback’ after Chinese industrial production was shown to have increased by 9.9 per cent and not the 10.6 per cent forecast by economists. The next piece of influential New Zealand data, a manpower survey for the 2Q, is scheduled for release on Wednesday.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5497, is trading against the Euro in the region of 0.6308 and is trading against the US Dollar in the region of 0.8199

Canadian Dollar

Better-than-expected employment data for Canada and the US on Friday allowed the ‘Loonie’ to broadly strengthen, climbing against the majority of its most traded peers and moving away from last week’s 8-month low against the US Dollar. An absence of Canadian economic news for the first half of the week means that ‘Loonie’ movement will be limited, but could occur in response to developments in the US.

The Canadian Dollar is presently trading against the Pound in the region of 0.6520, is trading against the Euro in the region of 0.7486 and is trading against the US Dollar in the region of 0.9736

These exchange rates were correct as of 9:14 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.