Prior to the publication of UK services PMI the Pound dropped to a month low against the US Dollar. The British currency was little changed against the Euro despite a separate report revealing that UK shop prices declined by the most since February 2007 last month. Although today’s news is likely to trigger Sterling movement, investors will also be looking ahead to tomorrow’s Bank of England policy decision.
GBP/EUR is trading in the region of 1.1697 and GBP/USD is trading in the region of 1.5148
Yesterday’s better-than-forecast US factory orders figures bolstered the US Dollar against several of its most traded peers. The safe-haven currency is likely to experience movement today as a result of US trade balance and initial jobless claims figures.
USD/GBP is trading in the region of 0.6602 and USD/EUR is trading in the region of 0.7720
The Euro dipped below 1.30 against the US Dollar as news broke of another resignation in the Portuguese government and investors speculate on the outcome of tomorrow’s European Central Bank policy meeting. With Italian, German and Eurozone services PMI failing to reach expectations this morning the common currency could post further declines in the hours ahead.
EUR/GBP is trading in the region of 0.8553 and EUR/USD is trading in the region of 1.2954
In the aftermath of the Reserve Bank of Australia’s latest policy meeting the Australian Dollar fell to its lowest level against the US Dollar since September 2010. However, the South Pacific currency was briefly able to recoup losses following the publication of unexpectedly strong Australian trade surplus data. However, the ‘Aussie’ slumped to a 4 ½ year low against its New Zealand rival following positive news for the smaller nation. The appeal of the Australian Dollar was limited as Asian shares dropped.
AUD/GBP is trading in the region of 0.5990, AUD/EUR is trading in the region of 0.6994 and AUD/USD is trading in the region of 0.9056
New Zealand Dollar
After data revealed an increase in whole milk powder prices, a key New Zealand export, the ‘Kiwi’ was supported and gained modestly against its US counterpart. Against the ‘Aussie’ the New Zealand Dollar was able to achieve a 4 ½ year high, although demand for the South Pacific asset was restrained by a decline in Asian shares.
NZD/GBP is trading in the region of 0.5098, NZD/EUR is trading in the region of 0.5951 and NZD/USD is trading in the region of 0.7714
During local trade the Canadian Dollar edged lower against its US peer as concerns regarding the pace of domestic recovery grew. Comparisons between the rate of economic expansion in Canada and the US were exacerbated as US factory orders were shown to have increased by more than expected, and the ‘Loonie’ continues to trade below 95 US cents.
CAD/GBP is trading in the region of 0.6252, CAD/EUR is trading in the region of 0.7315 and CAD/USD is trading in the region of 0.9477
These exchange rates were correct as of 9:10 am