With risk appetite dampened due to Eurozone uncertainty Sterling recorded losses against several of its peers, including the US Dollar and Euro. Concern over the economic impact of Hurricane Sandy saw investor’s flock to the save-haven ‘Greenback’ and push the Pound back by 0.5 per cent, despite better than forecast UK lending statistics. Caution remains the order of the day as confidence in UK economic recovery is by no means assured with some experts warning that this current bout of optimistic data could be masking underlying weakness. CBI Distributive Trades is the UK release to watch out for today.
The Pound is presently trading against the Euro in the region of 1.2406 and is trading against the US Dollar in the region of 1.6054
As Hurricane Sandy began to make its presence felt US financial markets closed, lessening fluctuations in the currency. The ‘Greenback’ is in line for some notable movement today as the damage caused by the ‘Perfect Storm’ becomes known and the US CB Consumer Confidence report is released. Analysts are predicting a respectable increase in the consumer confidence figure and if this proves accurate it would be a further sign of slow improvement in the American economic situation.
The US Dollar is presently trading against the Pound in the region of 0.6227 and is trading against the Euro in the region of 0.7727
Despite continued concern over the situations in Spain and Greece and increased risk aversion in the marketplace the Euro posted modest gains against several of its main competitors, including the British Pound and US Dollar. Several important economic indicators for the Eurozone are on the cards for today and could cause significant volatility in the common currency. Already this morning it has been revealed that Spain’s economy has contracted for a fifth consecutive quarter despite all attempts at repairing its gaping debt, though the result was not as bad as feared. Also today ECB President Mario Draghi is scheduled to make a speech, Eurozone EC Economic Business Climate/Sentiment reports are to be released and an auction of Italian 10-year bonds is to take place.
The Euro is presently trading against the Pound in the region of 0.8057 and is trading against the US Dollar in the region of 1.2944
As investors continue to trim bets that the Reserve Bank of Australia will lower interest rates the ‘Aussie’ turned bullish against a few of its main contemporaries, although it did post losses against the Japanese Yen. Odds that the RBA will slash its key rate by 0.25 per cent on November 6th fell from 64 per cent to 59 per cent and against the ‘Greenback’ the Australian Dollar climbed 0.3 per cent. The ripple effect of the Bank of Japan’s policy announcement could continue to impact the ‘Aussie’ and the ‘Kiwi’ as the day goes on.
The Australian Dollar is presently trading against the Pound in the region of 0.6455, is trading against the Euro in the region of 0.8011 and is trading against the US Dollar in the region of 1.0363
New Zealand Dollar
After the closure of financial markets in the US the ‘Kiwi’ fell against the US Dollar and Euro, although it did record modest gains against the British Pound. However, risk aversion eased as trade wore on and the New Zealand Dollar was able to benefit. Expectations that the Reserve Bank of New Zealand will lower interest rates dropped concurrently with similar expectations concerning Australia’s central bank and the ‘Kiwi’ consequently enjoyed a slight rebound.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5121, is trading against the Euro in the region of 0.6353 and is trading against the US Dollar in the region of 0.8224
Just days after ratings agency Moody’s Investors Service cautioned that the ratings of six Canadian based lenders may be slashed the Canadian currency suffered another blow. For the first time since August of this year the ‘Loonie’ dropped below parity with its American rival. This followed five consecutive days of losses for the Canadian Dollar, the worst run of losses since May. With no notable Canadian news immediately ahead volatility in the currency is likely to be caused by developments in the US.
The Canadian Dollar is presently trading against the Pound in the region of 0.6223, is trading against the Euro in the region of 0.7723 and is trading against the US Dollar in the region of 0.9999