Pound Sterling
The Pound’s bullish relationship with the US Dollar continued as the European session opened, with the British currency achieving close to an eight-month high against the ‘Greenback’. If today’s UK consumer price index shows that inflation slowed in August the Pound could consolidate gains in the hours ahead.
GBP/EUR is trading in the region of 1.1920 and GBP/USD is trading in the region of 1.5916
US Dollar
Ongoing speculation regarding the outcome of the Federal Open Market Committee’s policy meeting weakened the US Dollar overnight and left the ‘Greenback’ languishing at three week low against the Euro. The North American currency could experience movement today as a result of US inflation figures, but investors will also be looking ahead to tomorrow’s all-important policy statement.
USD/GBP is trading in the region of 0.6284 and USD/EUR is trading in the region of 0.7492
Euro
Yesterday the Euro advanced to a three-week high against the US Dollar as the North American asset broadly softened in response to surprising news regarding the Chairmanship of the Federal Reserve. If today’s ZEW economic sentiment survey for Germany shows the improvement expected the common currency could extend gains as the European session progresses.
EUR/GBP is trading in the region of 0.8389 and EUR/USD is trading in the region of 1.3352
Australian Dollar
The minutes from the latest Reserve Bank of Australia policy meeting reinforced the central bank’s assertion that a weaker ‘Aussie’ will benefit the domestic economy. Consequently, the Australian Dollar lost ground against several of its most traded peers during the local session.
AUD/GBP is trading in the region of 0.5857, AUD/EUR is trading in the region of 0.6982 and AUD/USD is trading in the region of 0.9314
New Zealand Dollar
During Australasian trading the ‘Kiwi’ strengthened against its Australian and US counterparts as the prospect of the RBNZ raising interest rates continued to lend the South Pacific asset support. Although New Zealand’s current account balance report is due out at 23:45 GMT ‘Kiwi’ movement is likely to be a little restrained ahead of the FOMC policy statement.
NZD/GBP is trading in the region of 0.5136, NZD/EUR is trading in the region of 0.6133 and NZD/USD is trading in the region of 0.8179
Canadian Dollar
After advancing on a broadly softening US Dollar yesterday the ‘Loonie’ closed the local session higher than it began. The Canadian asset also strengthened against peers like the Pound as commodity-driven currencies were boosted by Federal Reserve developments. Canadian Dollar fluctuations may occur today in response to US inflation data, although a domestic manufacturing shipments report will also be of interest.
CAD/GBP is trading in the region of 0.6087, CAD/EUR is trading in the region of 0.7259 and CAD/USD is trading in the region of 0.9690
These exchange rates were correct as of 09:10 am
