Ahead of the release of UK services PMI, the Pound softened against the Euro. The GBP/EUR pairing was still under pressure from yesterday’s positive Eurozone developments, and a report showing a slower-than-expected increase in UK house prices saw Sterling slip lower. The British asset also weakened against the US Dollar for the first time in four days.
GBP/EUR is trading in the region of 1.1913 and GBP/USD is trading in the region of 1.6196
With no end to the partial US shutdown in sight, the US Dollar’s bearish relationship with peers like the Euro continued. Concerns that US growth will be significantly impacted if this shutdown continues for much longer are likely to keep ‘Greenback’ movement restrained today.
USD/GBP is trading in the region of 0.6175 and USD/EUR is trading in the region of 0.7355
Yesterday’s dovish statement from the European Central Bank supported the Euro during local trading. The common currency had previously strengthened in reaction to Italian Prime Minister Enrico Letta’s victory and managed to hold on to gains against the US Dollar and Pound overnight. Positive French and German services PMI gave the Euro an additional boost during the European session.
EUR/GBP is trading in the region of 0.8397 and EUR/USD is trading in the region of 1.3599
Global growth fears, sparked by the US Federal shutdown, left higher-risk assets like the ‘Aussie’ trailing at the end of the Australasian session. The currency largely retained declines recorded yesterday following the publication of disappointing domestic building approvals and trade deficit data.
AUD/GBP is trading in the region of 0.5788, AUD/EUR is trading in the region of 0.6903 and AUD/USD is trading in the region of 0.9390
New Zealand Dollar
As the US government remained partially shutdown for a second day, investors lost their appetite for currencies like the ‘Kiwi’ and the South Pacific asset extended declines against its rivals.
NZD/GBP is trading in the region of 0.5142, NZD/EUR is trading in the region of 0.6071 and NZD/USD is trading in the region of 0.8317
The ongoing political drama in the US kept ‘Loonie’ movement restrained during the North American session, with the commodity-driven Canadian currency drifting lower against the majority of its main counterparts.
CAD/GBP is trading in the region of 0.5968, CAD/EUR is trading in the region of 0.7121 and CAD/USD is trading in the region of 0.9681
These exchange rates were correct as of 09:30 am