Pound falls against counterparts

Pound Sterling

After top ratings agency Standard & Poor’s lowered the UK’s credit rating outlook from stable to negative on the back of poor economic growth the Pound weakened, dropping against the Euro and US Dollar. However, in the hours following the decision Sterling was able to rebound against the ‘Greenback’, climbing 0.2 per cent. A lack of economic news for the UK means that movement in the currency will most likely be caused by Eurozone releases, including the consumer price index. If any of the figures should come in lower than expected the Pound may be able to reverse some of its recent declines against the common currency.

The Pound is presently trading against the Euro in the region of 1.2318 and is trading against the US Dollar in the region of 1.6116

US Dollar

More positive than predicted US unemployment claims data allowed the US Dollar to experience a slight rebound against the British Pound. Meanwhile, speculation that the Bank of Japan may announce a new round of monetary easing following this weekend’s election ensured that the American currency also continued its bullish trend against safe-haven rival the Japanese Yen. In the hours ahead investors will be focusing on US consumer price index and industrial production figures.

The US Dollar is presently trading against the Pound in the region of 0.6205 and is trading against the Euro in the region of 0.764

Euro

For the fifth consecutive day the Euro strengthened against the US Dollar. The common currency was supported in its advance by the decision of European Union leaders to implement a joint banking supervision strategy. The common currency was also able to achieve an eight week high against lower-risk asset the Japanese Yen and climb against its British rival. A host of influential economic data for the Eurozone is due for release today, including consumer price index figures. If any of the data should fail to meet expectations the Euro could reverse its bullish trend.

The Euro is presently trading against the Pound in the region of 0.8118 and is trading against the US Dollar in the region of 1.3081

Australian Dollar

Although risk appetite was dampened by a lack of resolution in the US budget negotiations a more optimistic outlook for Chinese manufacturing allowed the Australian Dollar to bound to a nine-month high against a broadly weakening Japanese Yen. The ‘Aussie’ also gained against its US counterpart. In the absence of Australian economic data, fluctuations in the South Pacific currency will be tied to developments in the Eurozone and US.

The Australian Dollar is presently trading against the Pound in the region of 0.6539, is trading against the Euro in the region of 0.8055 and is trading against the US Dollar in the region of 1.054

New Zealand Dollar

The New Zealand Dollar continued to trade higher against its lower-risk competitors after a private report indicated that Chinese manufacturing may expand more rapidly than previously thought. With New Zealand’s trade prospects bolstered the ‘Kiwi’ was able to achieve its strongest level against the Japanese Yen since October 2008.  The currency posted a 0.2 per cent gain on the US Dollar after dropping off from the nine-month high seen yesterday.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5234, is trading against the Euro in the region of 0.6443 and is trading against the US Dollar in the region of 0.8421

Canadian Dollar

After dropping from a two-month high against the US Dollar the ‘Loonie’ closed trade little changed against its American counterpart. Although fiscal cliff concerns kept the ‘Greenback’ lower, falling resource prices tempered gains in the commodity driven Canadian Dollar. Today volatility in the ‘Loonie’ is most likely to result from developments in the US.

The Canadian Dollar is presently trading against the Pound in the region of 0.6306, is trading against the Euro in the region of 0.7772 and is trading against the US Dollar in the region of 1.0162

 

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.