New Zealand Dollar rallied

Pound Sterling

After better-than-forecast UK Jobs data Sterling was able to climb around 0.4 per cent and achieve a one-week high against its US rival. The report detailing record high employment levels bolstered expectations of reasonable UK third quarter recovery whilst minutes from the Bank of England’s latest gathering showed a divide over the need for more stimulus. However, a broadly firmer Euro maintained the advances made yesterday, hovering at a four month high against the Pound. The data to watch out for today is Septembers UK retail sales.

The Pound is presently trading against the Euro in the region of 1.2316 and is trading against the US Dollar in the region of 1.6122

US Dollar

As risk appetite continued to strengthen the US Dollar maintained its bearish trend against its contemporaries. The ‘Greenback’ recorded particular losses against the Euro, dropping to its lowest level for nearly four weeks. The American currency is expected to experience significant volatility in the hours ahead following the release of US unemployment claims. A better-than-expected figure could either see the US Dollar recouping some of its recent losses or push it lower through improving confidence in global economic recovery.

The US Dollar is presently trading against the Pound in the region of 0.6202 and is trading against the Euro in the region of 0.7638

Euro

After galloping to a four-month high against the Pound yesterday the Euro was able to hold on to its gains despite better-than-predicted UK employment figures. The common currency was also able to advance against a broadly weakening US Dollar, cruising to its highest level against the ‘Greenback’ for almost a month. With the two-day EU Heads of State summit beginning today investors will be keeping a keen eye on any developments in Brussels.

The Euro is presently trading against the Pound in the region of 0.8118 and is trading against the US Dollar in the region of 1.3093

Australian Dollar

Recent reports indicated that regaining economic stability in China might be achievable sooner than many expected and the Australian Dollar was able to benefit from the fact. Data releases showed that China’s economy met economist’s expectations for third quarter growth whilst fixed-asset investment, industrial production and retail sales all came in above forecast levels. This led to Australian government bonds falling for a third consecutive day which pushed the ‘Aussie’ higher against several of its main rivals. Demand for the Australian currency was tempered however after an independent report indicated that the nation’s business confidence was wallowing close to a year low.

The Australian Dollar is presently trading against the Pound in the region of 0.6441, is trading against the Euro in the region of 0.7918 and is trading against the US Dollar in the region of 1.0384

New Zealand Dollar

Better-than-expected Chinese economic data allowed the New Zealand Dollar to continue its recent rally. Some economists are predicting that with investor optimism regarding global economic recovery reassured by data from Asia and the US, the higher yielding ‘Kiwi’ could extend its current gains. The EU summit in Brussels could also cause fluctuations in the South Pacific currency. Any reassuring developments relating to the Eurozone could further whet risk-appetite but any concerning news could push investors back to safe-haven currencies like the US Dollar and Japanese Yen.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5095, is trading against the Euro in the region of 0.6265 and is trading against the US Dollar in the region of 0.8216

Canadian Dollar

For the first time in several days the Canadian Dollar was able to post gains against its American competitor. With risk aversion dampened the ‘Loonie’ – a resource reliant currency – found itself in greater demand and it was able to advance 0.9 per cent against the US Dollar. With no key Canadian data on the cards for today developments in Europe and the US will be the primary causes of volatility for the currency.

The Canadian Dollar is presently trading against the Pound in the region of 0.6334, is trading against the Euro in the region of 0.7804 and is trading against the US Dollar in the region of 1.0221

 

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.