Pound Dips ahead of September GDP

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Pound Sterling

In spite of economists forecasting positive results in manufacturing, trade balance and GDP data for the UK the Pound opened the European session trading lower against the ‘Greenback’. Sterling was holding steady against the Euro, but if today’s UK reports meet or exceed estimates the British asset could advance.

GBP/EUR is trading in the region of 1.1861 and GBP/USD is trading in the region of 1.6039

US Dollar

News that Janet Yellen, a supporter of US quantitative easing, is likely to take on the role of Chairman of the Federal Reserve boosted higher-risk currencies overnight and helped the ‘Greenback’ advance on a broadly softening Yen. The ongoing political uncertainty in the US will continue to impact market movement in the hours ahead, but the publication of minutes from the Federal Reserve’s recent policy meeting will also be of significant interest.

USD/GBP is trading in the region of 0.6235 and USD/EUR is trading in the region of 0.7394

Euro

Yesterday’s lacklustre export and factory orders data for Germany saw the Euro soften against several of its main rivals, and the common currency was little changed as the local session began. If today’s German industrial production data shows the 1.4 per cent decline forecast the Euro could slip further.

EUR/GBP is trading in the region of 0.8433 and EUR/USD is trading in the region of 1.3526

Australian Dollar

The expectation that tomorrow’s Australian employment data will show that the nation added jobs in September boosted the ‘Aussie’ against its peers and helped the currency regain losses sustained as a result of disappointing consumer confidence figures.

AUD/GBP is trading in the region of 0.5883, AUD/EUR is trading in the region of 0.6975 and AUD/USD is trading in the region of 0.9436

New Zealand Dollar

A surprising fall in retail card spending in New Zealand, coupled with US pressures, weakened the ‘Kiwi’ overnight and left the South Pacific asset trading lower against its US counterpart. However, if today’s domestic performance of manufacturing index is positive the New Zealand Dollar could recoup losses during Australasian trading.

NZD/GBP is trading in the region of 0.5160, NZD/EUR is trading in the region of 0.6133 and NZD/USD is trading in the region of 0.8287

Canadian Dollar

Although Canadian housing starts increased by more than expected, the exceedingly tense political situation in the US left the ‘Loonie’ trading in the region of a four-week low against its US counterpart.

CAD/GBP is trading in the region of 0.6011, CAD/EUR is trading in the region of 0.7129 and CAD/USD is trading in the region of 0.9643

These exchange rates were correct as of 09:30 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.