Pound Sterling
The Pound has hit its highest level in two-months against the US Dollar due to thin trading demand from the Middle East and international companies looking to hedge. Investors are predicting that if the US cannot agree on the ‘fiscal cliff’ then the Pound could climb even higher.
Against the Euro the Pound reversed its losses. Traders of Sterling should be aware of the latest inflation data due for release tomorrow and Retail sales data on Thursday.
The Pound is presently trading against the Euro in the region of 1.2317 and is trading against the US Dollar in the region of 1.6223
US Dollar
The Dollar has seen limited movement so far this week, and was unable to recoup the losses it sustained last week due to expectations that US interest rates will remain at their current levels for the next few years.
Dollar traders should monitor developments in the ongoing ‘fiscal cliff’ negotiations between President Obama and US Congressional leaders. Whilst the talks appear to be in deadlock there were signs yesterday that progress can be made. Positive developments could lead to risk taking weakening the currency.
The US Dollar is presently trading against the Pound in the region of 0.6164 and is trading against the Euro in the region of 0.7592
Euro
The Euro is holding steady due to a lack of international news impacting the currency. Against the US Dollar the Euro is holding close to a seven-month high and made a loss against the Pound. Euro traders should keep an eye on developments regarding the ‘fiscal cliff’ as any developments there could create volatility for the single currency
The Euro is presently trading against the Pound in the region of 0.8119 and is trading against the US Dollar in the region of 1.3173
Australian Dollar
The ‘Aussie’ suffered losses after the nation’s Reserve Bank blamed a softening labour market for its decision to cut interest rates at its December meeting. The RBA said that stabilizing growth in its biggest trade partner, China will be a boon for the Australian economy.
The Australian Dollar is presently trading against the Pound in the region of 0.6495, is trading against the Euro in the region of 0.8000 and is trading against the US Dollar in the region of 1.0538
New Zealand Dollar
The ‘Kiwi’ is holding up thanks to increasing optimism that negotiators in the U.S. will find a way to prevent a series of automatic tax increases and spending cuts known as the “fiscal cliff.” Demand for riskier assets increased as a result benefiting the perceived riskier commodity currencies.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5200, is trading against the Euro in the region of 0.6404 and is trading against the US Dollar in the region of 0.8436
Canadian Dollar
The ‘Loonie’ strengthened against its US relation yesterday due to the optimism over the ongoing ‘fiscal cliff’ negotiations. The currency is beginning to benefit from the IMF’s recent decision to make the Canadian Dollar a safe-haven currency after C$13.3 billion was bought by investors in October.
The Canadian Dollar is presently trading against the Pound in the region of 0.6263, is trading against the Euro in the region of 0.7713 and is trading against the US Dollar in the region of 1.0164
