An unexpectedly dovish statement from the Bank of England saw the Pound drop against the majority of its currency rivals. Sterling is trading within the region of a five-week low against the US Dollar and is softer against the Euro. The GBP/USD pairing may fluctuate further following the publication of US non-farm payrolls data.
GBP/EUR is trading in the region of 1.1650 and GBP/USD is trading in the region of 1.5014
Ahead of the release of influential US non-farm payrolls data the US Dollar advanced on most of its counterparts. Economists have forecast that the US unemployment rate will dip to 7.5 per cent. If this estimation proves accurate the odds of the Federal Reserve tapering stimulus will increase and the US Dollar could see significant gains.
USD/GBP is trading in the region of 0.6659 and USD/EUR is trading in the region of 0.7760
Although recent reports have indicated that the Portuguese government may have reached an accord, the ongoing talks between Greece and the Troika (coupled with yesterday’s downbeat statement from the European Central Bank) have left the Euro trading below 1.28 against a bullish US Dollar. Factors likely to influence the Euro today include German factory orders data and the US non-farm payrolls report.
EUR/GBP is trading in the region of 0.8584 and EUR/USD is trading in the region of 1.2889
Although the ECB and BoE policy statements, which intimated that looser fiscal policy would continue, allowed the ‘Aussie’ to strengthen the currency pared its gains against the US Dollar during the local session. The American currency was supported by the expectation that today’s US non-farm payrolls report will show that the world’s largest economy added 165,000 positions.
AUD/GBP is trading in the region of 0.6088, AUD/EUR is trading in the region of 0.7104 and AUD/USD is trading in the region of 0.9148
New Zealand Dollar
Surprisingly dovish policy statements from the BoE and ECB supported higher-risk currencies like the New Zealand Dollar yesterday. However, with investors looking ahead to the US non-farm payrolls report (the week’s big news) the ‘Kiwi’ weakened to 78.19 US cents. Despite that, the South Pacific currency is still in line to post a 5-day gain of 1 per cent against its American rival.
NZD/GBP is trading in the region of 0.5205, NZD/EUR is trading in the region of 0.6063 and NZD/USD is trading in the region of 0.7815
As easing political tensions in Egypt caused the price of crude oil to fall, the Canadian Dollar turned bearish. The commodity-driven currency also weakened against the US Dollar in anticipation of a less-than-impressive Canadian employment report.
CAD/GBP is trading in the region of 0.6325, CAD/EUR is trading in the region of 0.7368 and CAD/USD is trading in the region of 0.9497
These exchange rates were correct as of 9:15 am