Pound fluctuates as UK inflation data surprises

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Pound Sterling

Yesterday the Pound was able to strengthen modestly against peers like the Euro and US Dollar on the expectation that this week’s UK employment and retail sales reports will show improvement. Sterling was little changed this morning ahead of the release of UK inflation data, but with CPI rising slightly more than expected in September fluctuations could occur. The British currency could also be boosted if a separate report shows the expected increase in UK house prices.

GBP/EUR is trading in the region of 1.1780 and GBP/USD is trading in the region of 1.5973

US Dollar

With hopes increasing regarding US lawmakers avoiding a default, investors turned to higher risk assets and the ‘Greenback’ retained recent declines overnight. According to one Senate official a deal could be announced today, bringing stability back to a market dogged by uncertainty in recent weeks.

USD/GBP is trading in the region of 0.6261 and USD/EUR is trading in the region of 0.7376

Euro

While the Euro fluctuated this morning as German import prices declined in August, year-on-year, movement was limited ahead of the publication of economic sentiment surveys for the Eurozone and Germany. That being said, the common currency did hold onto gains recorded against its US peer during North American trading.

EUR/GBP is trading in the region of 0.8489 and EUR/USD is trading in the region of 1.3561

Australian Dollar

Following the publication of minutes from the most recent Reserve Bank of Australia policy meeting the ‘Aussie’ broadly strengthened, hitting a multi-month high against its US counterpart. The minutes lessened the odds of the RBA issuing an additional rate cut before the end of the year and lent support to the South Pacific asset.

AUD/GBP is trading in the region of 0.5975, AUD/EUR is trading in the region of 0.7035 and AUD/USD is trading in the region of 0.9542

New Zealand Dollar

For the first time in several days the New Zealand Dollar softened against its Australian counterpart as the ‘Aussie’ was boosted by RBA minutes. ‘Kiwi’ declines were also triggered by Bank of New Zealand Deputy Governor Grant Spencer’s comments regarding mortgage-lending restrictions and rate increases. With New Zealand’s inflation report due out at 22:45 GMT further ‘Kiwi’ movement can be expected.

NZD/GBP is trading in the region of 0.5252, NZD/EUR is trading in the region of 0.6178 and NZD/USD is trading in the region of 0.8397

Canadian Dollar

While a lack of domestic news and the US national holiday limited Canadian Dollar movement yesterday, the currency was still feeling the pressure as the Federal shutdown entered its third week. However, the ‘Loonie’ has since advanced on its US rival as the likelihood of a US default occurring decreased, supporting higher-risk assets.

CAD/GBP is trading in the region of 0.6054, CAD/EUR is trading in the region of 0.7132 and CAD/USD is trading in the region of 0.9670

These exchange rates were correct as of 09:30 am

Laura Barrett
This post was written by
Laura moved from the US to the UK several years ago. As a corporate sales executive for a leading foreign exchange company, Laura has expert knowledge of currency movements and market trends and is able to offer specialist guidance regarding making a trade at the most lucrative time and protecting transactions from currency risk.