Pound Dips as Construction Data Disappoints

foreign_exchange_rates

Pound Sterling

The Pound may have edged away from a five-week low against the Euro and recorded modest gains against the US Dollar following the release of a UK housing report showing a 0.5 per cent monthly increase in property prices, but a less-impressive domestic report soon saw the asset shed gains. While economists expected UK construction output to increase by 0.8 per cent it in August it actually declined by 0.1 per cent.

GBP/EUR is trading in the region of 1.1790 and GBP/USD is trading in the region of 1.5982

US Dollar

As US lawmakers continue to discuss the debt ceiling and federal shutdown, the US Dollar consolidated gains against several of its most traded peers and extended its advance against the Yen. In the hours ahead further ‘Greenback’ fluctuations could result from the University of Michigan confidence index.

USD/GBP is trading in the region of 0.6255 and USD/EUR is trading in the region of 0.7377

Euro

While the Euro rallied against the US Dollar as German inflation data met forecasts, the common currency was slightly softer against the Pound prior to the release of the UK’s construction report. Further Euro movement may be limited before the weekend, although US developments will be of interest.

EUR/GBP is trading in the region of 0.8483 and EUR/USD is trading in the region of 1.3555

Australian Dollar

As Australia relies heavily on China for trade, the expectation that tomorrow’s import figures for the Asian nation will show improvement saw the ‘Aussie’ advance overnight. The South Pacific asset strengthened against peers like the US Dollar and Pound and could climb higher over the weekend.

AUD/GBP is trading in the region of 0.5919, AUD/EUR is trading in the region of 0.7001 and AUD/USD is trading in the region of 0.9472

New Zealand Dollar

Rising Asian stocks, coupled with the expectation of strong Chinese trade data, gave the New Zealand Dollar a boost overnight. The ‘Kiwi’ also advanced as investors looked ahead to tomorrow’s domestic inflation report, which is expected to show that the inflation rate climbed to its highest level for a year and a half.

NZD/GBP is trading in the region of 0.5212, NZD/EUR is trading in the region of 0.6104 and NZD/USD is trading in the region of 0.8331

Canadian Dollar

The ‘Loonie’ fluctuated yesterday as Canada’s new house price index came in just shy of estimates and US political discussions continued. Today’s Canadian employment reports could trigger significant movement if they surprise forecasts for a 15,000 increase in positions.

CAD/GBP is trading in the region of 0.6022, CAD/EUR is trading in the region of 0.7101 and CAD/USD is trading in the region of 0.9626

These exchange rates were correct as of 09:50 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.