Pound declines against several of its most traded rivals

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Pound Sterling

After UK inflation was shown to have accelerated by more than forecast in May the Pound declined against several of its most traded rivals. The British currency may experience movement this morning in the wake of the publication of minutes from the Bank of England’s most recent policy meeting, but the dominant news today remains the US Federal Open Market Committee meeting.

GBP/EUR is trading in the region of 1.1684 and GBP/USD is trading in the region of 1.5652

US Dollar

During the local session the ‘Greenback’ strengthened following the release of US consumer price and housing data. The safe-haven currency is in line for a volatile day as the world waits for the Federal Reserve to confirm or refute speculation regarding the reining in of quantitative easing.

USD/GBP is trading in the region of 0.6391 and USD/EUR is trading in the region of 0.7467

Euro

Over the course of yesterday the Euro strengthened against several of its most traded peers as ZEW economic sentiment surveys for the Eurozone and Germany beat expectations. The common currency was little changed today as the market remains firmly focused on developments in the US.

EUR/GBP is trading in the region of 0.8559 and EUR/USD is trading in the region of 1.3393

Australian Dollar

The ‘Aussie’ extended its recent decline against the US Dollar during the local session as investors anxiously await the outcome of the Federal Open Market Committee’s policy meeting. If Bernanke intimates that a reduction in QE could be on the cards in the months ahead the ‘Greenback’ could strengthen and the Australian Dollar may fall further.

AUD/GBP is trading in the region of 0.6068, AUD/EUR is trading in the region of 0.7092 and AUD/USD is trading in the region of 0.9503

New Zealand Dollar

Positive domestic data, including a report showing that New Zealand’s current account deficit narrowed and another which revealed that whole-milk powder prices gained for the first time in two-months, allowed the ‘Kiwi’ to post a modest advance on its US counterpart during local trade. Gains were limited ahead of the end of the Federal Reserve fiscal policy meeting.

NZD/GBP is trading in the region of 0.5116, NZD/EUR is trading in the region of 0.5962 and NZD/USD is trading in the region of 0.8013

Canadian Dollar

The ‘Loonie’ slid against its US rival for a third day ahead of Federal Reserve Chairman Ben Bernanke’s influential monetary policy announcement. The Canadian Dollar weakened to 97.92 US Dollars in spite of futures on crude oil, a major Canadian export, hitting 98.65 Dollars per barrel. Although news from the US is likely to be responsible for the majority of market movement today, the first announcement of new Bank of Canada Governor Stephen Poloz will also be of interest.

CAD/GBP is trading in the region of 0.6258, CAD/EUR is trading in the region of 0.7313 and CAD/USD is trading in the region of 0.9793

These exchange rates were correct as of 9:18 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.