Possibility of military action in Syria benefits safe havens

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Pound Sterling

The Pound is little changed against the US Dollar and Euro due to speculation that Bank of England Governor Mark Carney will signal his intention to maintain borrowing costs at a record low in tomorrow’s speech. The speculation follows comments made by deputy governor Charlie Bean who said that Central Bank policy makers intend to maintain interest rates at record lows for the seeable future.

GBP/EUR is trading in the region of 1.1613 and GBP/USD is trading in the region of 1.5536

US Dollar

The ‘Greenback’ made gains against the majority of its most traded peers despite Monday’s worse-than-expected US durable goods data release. The fall in sales failed to dampen speculation that the Federal Reserve will choose to start cutting its bond purchases next month. The Dollar Index was also supported after concern was raised after the US said that it was prepared to take military action in Syria.

USD/GBP is trading in the region of 0.6437 and USD/EUR is trading in the region of 0.7476

Euro

The Euro is weaker against the US Dollar as concerns that the US military may take action in Syria spurred demand for safe haven currencies.  The Euro softened after U.S. Secretary of State John Kerry said President Obama will hold Syria’s government accountable for using chemical weapons.

EUR/GBP is trading in the region of 0.8611 and EUR/USD is trading in the region of 1.3375

Australian Dollar

The ‘Aussie’ declined against the majority of its most traded peers as volatility for the currency reached its highest close in six weeks, damping demand for the currency. Against the US Dollar and Japanese Yen the ‘Aussie’ weakened as investors continued to sell off emerging market holdings and as the market awaits the release of data which is expected to show that home-price gains in the US economy remained close to a seven-year high.

AUD/GBP is trading in the region of 0.5772, AUD/EUR is trading in the region of 0.6703 and AUD/USD is trading in the region of 0.8966

New Zealand Dollar

The ‘Kiwi’ weakened against the US Dollar and the Pound as concerns over possible military intervention in Syria weighs on risk-sensitive currencies. Earlier in local trading the currency found support after the country’s biggest dairy producer, Fonterra hiked its forecast payment to farmers as global dairy prices remain elevated.

NZD/GBP is trading in the region of 0.5025, NZD/EUR is trading in the region of 0.5835 and NZD/USD is trading in the region of 0.7805

Canadian Dollar

The ‘Loonie’ is trading close to its lowest level in seven-weeks against its US as the ongoing speculation over whether the Federal Reserve will taper its monetary policy in September continues to weigh on the ‘Loonie’.

CAD/GBP is trading in the region of 0.6116, CAD/EUR is trading in the region of 0.7103 and CAD/USD is trading in the region of 0.9501

These exchange rates were correct as of 9:00 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.