Loonie may have peaked

Pound Sterling

A wary market has resulted in the pound falling against the US dollar. Although poor euro-zone data saw the former currency gain against its European rival, falling UK retail figures confirmed fears that a return to growth is still beyond reach despite falling 0.1 per cent less than forecast and kept the pound lower against the American currency.

The Pound is presently trading against the Euro in the region of 1.2502 and is trading against the US Dollar in the region of 1.6183

US Dollar

Despite gaining on the majority of its rivals over the course of several hours the US dollar went on to stagnate after the flurry of market movement caused by Chinese manufacturing figures calmed. Data releases which will affect the US dollar over the course of the day include the weekly unemployment claims figures and the Philly Fed Manufacturing Index – both have the potential to cause significant fluctuations with some analysts anticipating disappointing results.

The US Dollar is presently trading against the Pound in the region of 0.6179 and is trading against the Euro in the region of 0.7706

Euro

Several data releases have contributed to the euro weakening today. Preliminary figures showed that euro-zone service sector PMI fell unexpectedly and France, the currency bloc’s second largest economy, reported an equally unexpected drop in manufacturing activity for September. Although contraction in Germany’s manufacturing activity had slowed and service sector activity in the nation experienced modest growth the euro still fell for a third day, declining against the dollar by the most for almost two months.

The Euro is presently trading against the Pound in the region of 0.7997 and is trading against the US Dollar in the region of 1.2965

Australian Dollar

Chinese manufacturing figures confirmed fears that the world superpower’s economy is faltering when it comes to industrial production and this in turn led to the Australian dollar dropping to its lowest levels in over a week. Against all 16 of its primary trading currencies the Aussie weakened and some economists are citing market disappointment as the cause. In the past month the Australian dollar has fallen by 3.1 per cent and some industry experts are predicting that increasing concern about the Chinese economy could lower the down-under dollar further.

The Australian Dollar is presently trading against the Pound in the region of 0.6418, is trading against the Euro in the region of 0.8007 and is trading against the US Dollar in the region of 1.0393

New Zealand Dollar

New Zealand might have experienced stronger than predicted economic growth in the second quarter but enjoyment in the fact might well be short lived. Governmental data showed that in the three months ending June 30th New Zealand’s GDP growth doubled economist’s expectations, but this positive news was outweighed by the Chinese manufacturing figures. Consequently, weaker equity markets across Asia saw the Kiwi dollar drop from 82.76 US cents to 82.48 as well as falling slightly against the euro. Against the pound and Australian dollar the Kiwi currency was relatively unchanged.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5086, is trading against the Euro in the region of 0.6357 and is trading against the US Dollar in the region of 0.8233

Canadian Dollar

Following the substantial rise in US stockpiles crude oil fell for a third day. Confidence in the likelihood of worldwide central banks significantly boosting growth through monetary stimulus has similarly faltered and as a result the Canadian dollar lost ground against most of its prominent trading partners. After brushing a 13-month high some analysts are predicting that the ‘Loonie’ has peaked and there will now be a pullback, potentially taking the currency as low as 98.90 US cents.

The Canadian Dollar is presently trading against the Pound in the region of 0.6306, is trading against the Euro in the region of 0.7868 and is trading against the US Dollar in the region of 1.0220

 

Laura Barrett
This post was written by
Laura moved from the US to the UK several years ago. As a corporate sales executive for a leading foreign exchange company, Laura has expert knowledge of currency movements and market trends and is able to offer specialist guidance regarding making a trade at the most lucrative time and protecting transactions from currency risk.