Pound Sterling
The Pound hit its highest level against the US Dollar for almost three months late yesterday after stubborn UK inflation added to expectations that the Bank of England will refrain from implementing a new round of monetary easing. Sterling broke through the $1.6226 level and could make further gains ahead of today’s release of the Bank of England’s December minutes. Against the Euro the Pound was little changed but could make losses if this afternoon’s retail sales data shows a larger-than-expected decline.
The Pound is presently trading against the Euro in the region of 1.2281 and is trading against the US Dollar in the region of 1.6296
US Dollar
The ‘Greenback’ made losses against a number of high-yielding rivals due to an increase in risk taking as investors grow more optimistic over the ongoing ‘fiscal cliff’ negotiations. Against the Japanese Yen the Dollar remained within reach of a 20-month high as speculation mounted that the new Japanese government will soon implement an aggressive policy of monetary easing weighed down on the Yen.
The US Dollar is presently trading against the Pound in the region of 0.6136 and is trading against the Euro in the region of 0.7536
The Euro
The Euro hit a seven-month high against the US Dollar due to speculation that US lawmakers will agree to a budget compromise regarding the ‘fiscal cliff’. The single currency also made gains against its major counterparts after credit rating agency Standard & Poor increased Greece’s credit rating. Euro traders should keep an eye on the ‘fiscal cliff’ negotiations, any changes positive or negative will impact the currency.
The Euro is presently trading against the Pound in the region of 0.8142 and is trading against the US Dollar in the region of 1.3269
Australian Dollar
The ‘Aussie’ has declined for a third day against the US Dollar due to concerns that the Oceanic nation’s economy is slowing and could face further interest rate cuts by the Central Bank. The worries come as Reserve Bank of Australia Governor Glenn Stevens said that a seamless handover from mining to other drivers of growth may not be possible.
The Australian Dollar is presently trading against the Pound in the region of 0.6459, is trading against the Euro in the region of 0.7931 and is trading against the US Dollar in the region of 1.0524
New Zealand Dollar
The ‘Kiwi’ has weakened after the New Zealand based and world’s largest dairy exporter, Fonterra Cooperative Group Ltd said that whole-sale milk prices have continued to decline. The currency is also being weakened by expectations that it’s latest GDP data will show that the nation’s economy has weakened.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5153, is trading against the Euro in the region of 0.6328 and is trading against the US Dollar in the region of 0.8398
Canadian Dollar
The ‘Loonie’ has continued to trade lower against the US Dollar as investors look to riskier assets as they become more confident that U.S leaders will reach an agreement on the ‘fiscal cliff’ before the end of the month deadline. The currency could see some strengthening if oil prices continue to rise.
The Canadian Dollar is presently trading against the Pound in the region of 0.6226, is trading against the Euro in the region of 0.7646 and is trading against the US Dollar in the region of 0.9854
