Pound at 9 ½ month low against Euro

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Pound Sterling

As the week began concerns about economic growth in the UK pushed the Pound to a 9 ½ month low against the Euro. The ongoing debate regarding the UK’s place within the EU is also proving a deterrent to investors and Sterling shed 0.5 per cent against its American rival over the course of trade yesterday. Today several pieces of key economic data, including UK consumer price/producer price indexes, are set to trigger significant volatility. Further indications of poor economic performance could see the Pound fall further as the day progresses.

The Pound is presently trading against the Euro in the region of 1.2031 and is trading against the US Dollar in the region of 1.6077

US Dollar

Worse-than-forecast industrial production figures for the Eurozone dampened risk appetite yesterday, allowing the US Dollar to advance against several of its peers. The ‘Greenback’ recorded particularly notable advances against the Swiss Franc and a broadly softening British Pound. Today investors will be focusing on US advance retail sales figures and the US producer price index for December. If data points to US economic recovery it could inspire risk taking in the marketplace, which would cause the ‘Greenback’ to fall.

The US Dollar is presently trading against the Pound in the region of 0.6219 and is trading against the Euro in the region of 0.7483

Euro

Yesterday the Euro managed to achieve a 9 ½ month high against the British Pound, an 11 month high against the USD and a 20 month high against the Japanese Yen. However, the common currency shed gains after the release of a disappointing industrial production figure for the Eurozone. Movement in the Euro will be tempered today by a lack of significant economic news from the 17 nation currency bloc, but fluctuations could occur as a result of developments in the US and UK.

The Euro is presently trading against the Pound in the region of 0.8313 and is trading against the US Dollar in the region of 1.3363

Australian Dollar

The Australian Dollar shed the majority of its recent gains prior to this week’s unemployment data for the South Pacific nation. With the data now expected to show an increase in unemployment– and after comments made by the Japanese economy minister – the ‘Aussie’ posted declines against several of its main peers, notably retreating from an over four year high against the Japanese Yen. Although today’s Australian Westpac consumer confidence index could cause movement investors will be focusing on news out of Japan and looking ahead to Thursday’s employment change data.

The Australian Dollar is presently trading against the Pound in the region of 0.6569, is trading against the Euro in the region of 0.7903 and is trading against the US Dollar in the region of 1.0558

New Zealand Dollar

Yesterday a positive report from the New Zealand Institute of Economic Research Inc saw the ‘Kiwi’ posting gains. However, after Akira Amari – the Japanese economy minister – heighted speculation that Japan won’t attempt to trigger further losses in the Yen the New Zealand Dollar dropped by 0.9 per cent against the safe haven asset. The ‘Kiwi’ also declined by 0.3 per cent against the US Dollar. In the days ahead movement in the South Pacific currency is most likely to occur as a result of developments in Japan.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5228, is trading against the Euro in the region of 0.6299 and is trading against the US Dollar in the region of 0.8424

Canadian Dollar

Hints that there could be more foreign investment in Chinese firms on the horizon led to Chinese stocks advancing and caused the Canadian Dollar to fall against its Australian and New Zealand counterparts, losing 0.3 and 0.7 per cent respectively. The ‘Loonie’ also fell back against several of its other most traded rivals, but did advance by 0.1 per cent on the safe-haven US Dollar. An absence of volatile Canadian data in the days ahead means that global economic developments will be behind any ‘Loonie’ movement.

The Canadian Dollar is presently trading against the Pound in the region of 0.6325, is trading against the Euro in the region of 0.7603 and is trading against the US Dollar in the region of 1.0167

 

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.