Inflation Data Inspires GBP/EUR Movement

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Pound Sterling

With UK inflation data scheduled for release at 09:30 GMT and forecast to show that consumer prices rose at a slower pace in October the Pound was putting in a fairly mixed performance as the local session opened. Although Sterling was holding steady against the Euro it declined against the US Dollar for a third day.

GBP/EUR is trading in the region of 1.1920 and GBP/USD is trading in the region of 1.5945

US Dollar

Overnight the ‘Greenback’ held gains against the Pound and continued trading close to an eight-week high against the Yen. If today’s Chicago activity index shows improvement, adding to the picture of a stabilising economic recovery in the US, the safe-haven asset could extend gains. The currency was also supported ahead of the speeches of two Federal Reserve officials.

USD/GBP is trading in the region of 0.6272 and USD/EUR is trading in the region of 0.7478

Euro

After reports confirmed that German consumer prices increased at the slowest rate for three years in October the Euro experienced modest movement. The common currency strengthened slightly against the Pound but with UK inflation figures also due out today additional EUR/GBP movement is likely.

EUR/GBP is trading in the region of 0.8390 and EUR/USD is trading in the region of 1.3377

Australian Dollar

A surprising drop in a gauge of Australian business sentiment wore on the ‘Aussie’ during South Pacific trading. The decline in confidence was the most significant since 2011 and pushed the Australian Dollar to a six-week low against its US counterpart. The commodity-driven asset was also adversely affected by concerns regarding growth in China, Australia’s largest trading partner.

AUD/GBP is trading in the region of 0.5845, AUD/EUR is trading in the region of 0.6972 and AUD/USD is trading in the region of 0.9323

New Zealand Dollar

Although the ‘Kiwi’ advanced yesterday as a result of improved export prospects for one of New Zealand’s main commodities, the currency fell to its lowest level this month against the US Dollar on Chinese growth concerns.

NZD/GBP is trading in the region of 0.5154, NZD/EUR is trading in the region of 0.6146 and NZD/USD is trading in the region of 0.8222

Canadian Dollar

An absence of pertinent economic news coupled with markets being closed for national holidays kept trading limited yesterday. However, the Canadian Dollar was able to strengthen against its US rival during the local session as the prospect of improving growth conditions in North America lent the ‘Loonie’ support.

CAD/GBP is trading in the region of 0.5977, CAD/EUR is trading in the region of 0.7127 and CAD/USD is trading in the region of 0.9530

These exchange rates were correct as of 9:20 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.