Pound brushes an 11-week high

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Pound Sterling

With a property report showing that UK house prices were little changed in April, but 0.9 per cent higher than a year ago, the Pound brushed an 11-week high against a broadly softening US Dollar. The British currency lost some ground against the Euro however on the expectation that the ECB will announce measures to bolster the Eurozone when it meets tomorrow. Sterling was supported yesterday as Bank of England data revealed an increase in home loans. This morning’s UK manufacturing figures are likely to trigger additional Pound movement.

The Pound is presently trading against the Euro in the region of 1.1793 and is trading against the US Dollar in the region of 1.5532

US Dollar

After figures showed an unexpected decline in US business activity the US Dollar declined against the majority of its most traded rivals. Given recent disappointing US data, the Federal Reserve is expected to maintain its current level of fiscal stimulus. Any provocative statements emerging from the two-day gathering of the FOMC could inspire ‘Greenback’ volatility. Today’s US ISM manufacturing figures and employment change data will also be of interest.

The US Dollar is presently trading against the Pound in the region of 0.6438 and is trading against the Euro in the region of 0.7591

Euro

The Euro declined against most of its currency rivals during the European session as unemployment in the Eurozone reached a record high of 12.1 per cent. However, speculation that the European Central Bank will take steps to support the currency bloc’s flagging economy when it meets tomorrow allowed the Euro to reverse losses against the US Dollar. Today an absence of economic news for the Eurozone means that fluctuations in the common currency are most likely to occur in response to US data and the highly anticipated FOMC policy meeting.

The Euro is presently trading against the Pound in the region of 0.8479 and is trading against the US Dollar in the region of 1.3167

Australian Dollar

Following the release of China’s manufacturing PMI, and ahead of the FOMC two-day policy meeting, the ‘Aussie’ was largely able to retain gains made against the US Dollar. Although factory production in China expanded last month growth occurred at a more moderate rate than in March. After the report was published the Australian Dollar slipped slightly against its US counterpart, but held on to much of the 0.9 per cent gain recorded over the last two days. Separate data showed that Australian manufacturing PMI plummeted from 44.4 to 36.7 last month.

The Australian Dollar is presently trading against the Pound in the region of 0.6666, is trading against the Euro in the region of 0.7858 and is trading against the US Dollar in the region of 1.0352

New Zealand Dollar

With today’s US employment and manufacturing data expected to disappoint the New Zealand Dollar was able to extend recent gains against the ‘Greenback’. If the Federal Reserve indicates that it may expand its current easing measures the New Zealand Dollar could advance further.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5522, is trading against the Euro in the region of 0.6515 and is trading against the US Dollar in the region of 0.8570

Canadian Dollar

Better than expected Canadian growth data allowed the Canadian Dollar to strengthen to 99.28 US Cents, its strongest level since February 15th. After posting growth of 0.3 per cent in February the Canadian economy is in line to record its most significant quarterly growth since 2011. USD ISM manufacturing data could trigger ‘Loonie’ fluctuations but investors will also be looking ahead to the FOMC’s policy meeting, which begins today.

The Canadian Dollar is presently trading against the Pound in the region of 0.6396, is trading against the Euro in the region of 0.7544 and is trading against the US Dollar in the region of 0.9934

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.