The Pound, which advanced yesterday following the publication of better-than-forecast manufacturing PMI, was little changed against the US Dollar this morning ahead of today’s UK construction data. Economists forecast that the index would come in at 49.8, indicating that the rate of contraction eased in May. Meanwhile a separate report revealed a gauge of UK retail sales rose in May.
GBP/EUR is trading in the region of 1.1705 and GBP/USD is trading in the region of 1.5290
The Dollar weakened below 100 Yen for the first time in a month during local trade as recent US data releases lessen the likelihood of the Federal Reserve scaling back stimulus in the months ahead. However, if Friday’s non-farm payrolls report shows a significant improvement in hiring the ‘Greenback’ could strengthen against its Asian peer once more.
USD/GBP is trading in the region of 0.6539 and USD/EUR is trading in the region of 0.7654
The Euro broadly strengthened yesterday as manufacturing PMI for the Eurozone pleasantly surprised. The common currency is likely to experience movement in the hours ahead as a result of the publication of April’s Producer Price Index for the region. Another unexpectedly good result could push the Euro toward further gains.
EUR/GBP is trading in the region of 0.8540 and EUR/USD is trading in the region of 1.3065
After the Reserve Bank of Australia’s latest policy meeting, at which the central bank argued that there was scope for additional easing, the ‘Aussie’ weakened against the majority of its most traded peers. Prior to the RBA meeting the Australian Dollar had posted its most significant one-day gain against the US Dollar for over a year as the odds of the Fed tapering stimulus declined. Tomorrow’s Australian Performance of Services Index could be a cause of additional ‘Aussie’ movement.
AUD/GBP is trading in the region of 0.6330, AUD/EUR is trading in the region of 0.7403 and AUD/USD is trading in the region of 0.9669
New Zealand Dollar
The New Zealand Dollar jumped by 1.8 per cent against its US counterpart during local trade as the likelihood of the Federal Reserve paring its current easing methods before the end of the year declined. It was the currency’s biggest daily leap for almost a year. During local trade a slight downward correction left the ‘Kiwi’ trading in the region of 80.62 cents against the ‘Greenback’
NZD/GBP is trading in the region of 0.5248, NZD/EUR is trading in the region of 0.6180 and NZD/USD is trading in the region of 0.8018
With US manufacturing slowing, Chinese PMI improving and commodities advancing, the Canadian Dollar was able to post its most significant advance against its US counterpart for 12 months. Today’s Canadian International Merchandise Trade data could be responsible for modest ‘Loonie’ movement.
CAD/GBP is trading in the region of 0.6332, CAD/EUR is trading in the region of 0.7412 and CAD/USD is trading in the region of 0.9682
These exchange rates were correct as of 9:20 am