Positive French and German Services PMI Help the Euro Surge

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Pound Sterling

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

US Dollar

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

Euro

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

Australian Dollar

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

Canadian Dollar

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

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.