New Zealand Dollar tumbled

Pound Sterling

For the second consecutive day the Pound was able to gain on its European cousin. With the Bank of England’s rates announcement imminent Sterling came close to achieving a five week high against the Euro. The majority of economists are predicting that the BoE will hold its current asset-purchase target of 375 billion pounds. Against the US Dollar the Pound recorded little change. Fluctuations in the Pound are likely to occur today with both BoE and European Central Bank rates announcements set for this afternoon.

The Pound is presently trading against the Euro in the region of 1.2519 and is trading against the US Dollar in the region of 1.5985

US Dollar

After an uneasy start to the day the ‘Greenback’ ended trade higher against most of its main rivals as investors lost their appetite for risk – although it failed to climb on the Japanese Yen. It appears unlikely that re-elected President Barack Obama and the US Congress will be able to avoid the fiscal cliff and this is encouraging investors to turn to safe-haven assets. Of particular interest today are the US International Trade Balance and Initial Jobless Claims figures.

The US Dollar is presently trading against the Pound in the region of 0.6257 and is trading against the Euro in the region of 0.7830

Euro

The Euro posted notable losses throughout trade yesterday following uncertainty in Greece, developments in the US and comments made by European Central Bank President Mario Draghi regarding the impact the Eurozone crisis is having on Germany. These issues combined to push investors towards lower-risk assets. The common currency began trade today close to a two-month low against the US Dollar. Although Greek President Antonis Samaras secured the approval needed to implement austerity measures his success was tainted by rioting and political dissention. With the ECB Interest Rate Announcement scheduled for this afternoon Euro movement is expected.

The Euro is presently trading against the Pound in the region of 0.7991 and is trading against the US Dollar in the region of 1.2771

Australian Dollar

The Australian Dollar was bolstered as austerity measures were given the go ahead in Greece and Australia recorded better-than-forecast employment growth in October. Although the jobless rate was expected to rise it held September’s level while the nation added 9,700 more jobs than economists estimated. This result lent support to the Reserve Bank of Australia’s decision not to cut interest rates and prevented the ‘Aussie’ from falling against its peers.

The Australian Dollar is presently trading against the Pound in the region of 0.6517, is trading against the Euro in the region of 0.8158 and is trading against the US Dollar in the region of 1.0409

New Zealand Dollar

The ‘Kiwi’ received a blow yesterday after a report released by Statistics New Zealand showed that the nation’s unemployment rate unexpectedly jumped to a 13-year high. In the third quarter of the year the jobless rate leapt from 6.8 per cent to 7.3 per cent despite economists predicting a modest decline in the level. This result, which served to boost concerns regarding New Zealand’s economic recovery, caused the New Zealand Dollar to tumble against several of its main peers.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5115, is trading against the Euro in the region of 0.6401 and is trading against the US Dollar in the region of 0.8166

Canadian Dollar

The Canadian Dollar dropped following President Barack Obama’s re-election. The ‘Loonie’ was shunned in favour of safe-haven assets as worries regarding the US fiscal cliff grow. Some industry experts are concerned that if the fiscal cliff of tax hikes and spending cuts goes ahead the US will be thrust into a deep recession, which would in turn have a negative effect on other world economies – including Canada’s. In the hours ahead investors will be focusing on key data releases in the US, including Initial Jobless Claims.

The Canadian Dollar is presently trading against the Pound in the region of 0.6280, is trading against the Euro in the region of 0.7866 and is trading against the US Dollar in the region of 1.0031

 

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.