Poor data saw Euro tumble

Pound Sterling

Prior to todays release of preliminary UK third-quarter Gross Domestic Product figures Sterling was able to make a 0.2 per cent advance on the US Dollar. The figures are expected to demonstrate that in the third-quarter the UK economy emerged from recession at long last. Economists have forecast that GDP will prove to be up 0.6 per cent from the previous three months. If this estimate is met or exceeded the Pound could be significantly bolstered.
The Pound is presently trading against the Euro in the region of 1.2365 and is trading against the US Dollar in the region of 1.6063

US Dollar

Although a positive US Housing report improved investor confidence in the American economic situation the ‘Greenback’ fell against its British rival on the back of optimistic UK GDP expectations. A batch of influential US data is set for release today including weekly unemployment claims, core durable goods orders and pending home sales figures. All three are forecast to show marked improvement in the American economy so upward volatility could be on the cards for the Dollar during afternoon trading.
The US Dollar is presently trading against the Pound in the region of 0.6231 and is trading against the Euro in the region of 0.7691

Euro

Fears in the stability of the Eurozone were heightened yesterday after worse-than-predicted German Flash Manufacturing PMI and Ifo Business Climate reports. In light of the German economy appearing to inch ever closer to recession the Euro posted losses against the majority of its peers. Further fluctuations in the common currency can be expected today on the back of the release of UK GDP figures and a host of US economic indicators. Investors will also be waiting for any revealing announcements coming out of the 17-nation currency bloc.
The Euro is presently trading against the Pound in the region of 0.8088 and is trading against the US Dollar in the region of 1.2994

Australian Dollar

With traders now forecasting a 64 per cent chance of the Reserve Bank of Australia lowering its key rate from 3.25 to 3 (rather than the 95 per cent chance predicated prior to the release of the inflation report) the ‘Aussie’ was able to post significant gains against the Japanese Yen. Against the safe-haven yen the Australian Dollar achieved its highest level for four-weeks. It also made a modest 0.1 per cent advance on the US Dollar.
The Australian Dollar is presently trading against the Pound in the region of 0.6457, is trading against the Euro in the region of 0.7985 and is trading against the US Dollar in the region of 1.0369

New Zealand Dollar

The Reserve Bank of New Zealand’s Rate Announcement helped the ‘Kiwi’ achieve an almost six-month high against the safe-haven Japanese Yen. In the announcement interest rates were left unchanged and RBNZ Governor Graeme Wheeler stated that market sentiment had improved in line with ‘more balanced’ risks to the global outlook. The New Zealand Dollar rose for a second day against its US counterpart, climbing by as much as 0.4 per cent.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5119, is trading against the Euro in the region of 0.6331 and is trading against the US Dollar in the region of 0.8228

Canadian Dollar

Comments made by Bank of Canada Governor Mark Carney regarding the lack of urgency surrounding raising interest rates pushed the Canadian Dollar lower against its main trading partners just as it broke away from a more than two-month low against the ‘Greenback’. The ‘Loonie’ experienced a rise of as much as 0.3 per cent after the Canadian central bank’s quarterly monetary policy report indicated the need for a gradual stimulus reduction but Carney’s remarks pushed it back by 0.1 per cent.
The Canadian Dollar is presently trading against the Pound in the region of 0.6271, is trading against the Euro in the region of 0.7751 and is trading against the US Dollar in the region of 1.0075

 

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.