Pound gained on USD and EUR

Pound Sterling

Despite sub-par manufacturing data the Pound was still able to record significant advances against the US Dollar and Euro, achieving a two-week high against the former currency. Demand for Sterling was kept steady by optimistic housing data, lowered expectations that the Bank of England will implement a further round of quantitative easing and continuing positivity inspired by last week’s third quarter GDP figures. UK PMI construction statistics, which are expected to show improvement, could be responsible for movement in the Pound today.

The Pound is presently trading against the Euro in the region of 1.2477 and is trading against the US Dollar in the region of 1.6091

US Dollar

With optimism regarding today’s release of US Non-Farm Payrolls at a high in light of yesterday’s positive indicators the US Dollar enjoyed a bullish relationship against several of its main counterparts. The ‘Greenback’ posted notable gains against the Euro and safe-haven rival the Japanese Yen. If the Yen continues to decline against its US competitor it will mark the longest stretch of losses for seven months. Should predictions relating to the Non-Farm Payrolls data prove accurate the US Dollar could continue to romp ahead.

The US Dollar is presently trading against the Pound in the region of 0.6214 and is trading against the Euro in the region of 0.7754

Euro

Although risk taking in the market place received a US inspired boost yesterday the Euro’s advances were limited by yet more indecisiveness in Greece. The Euro is likely to experience volatility today as final Markit Eurozone Manufacturing PMI showed contraction for the fifteenth month. Although the level of contraction was 0.1 per cent better than expected the drop from 46.1 to 45.4 is a major concern for the currency bloc. The Markit report also detailed job losses in all Eurozone nations other than Ireland, accelerating contraction in output and new orders and continuing weak demand.

The Euro is presently trading against the Pound in the region of 0.8013 and is trading against the US Dollar in the region of 1.2896

Australian Dollar

The ‘Aussie’ was able to brush its highest level for over four weeks as upbeat developments in the US bolstered confidence in the global economic recovery and investors turned to higher yielding assets. The Australian Dollar was able to climb as high as 1.0420 against the US Dollar but gains were tempered by further dissention in Greece, one of the Eurozone’s most indebted members. If today’s US Non-Farm Payrolls figures exceed expectations the ‘Aussie’ could be pushed higher against its peers.

The Australian Dollar is presently trading against the Pound in the region of 0.6454, is trading against the Euro in the region of 0.8047 and is trading against the US Dollar in the region of 1.0378

New Zealand Dollar

After advancing against the British Pound, Euro and Australian Dollar the New Zealand Dollar’s recent rally was stymied as investors await the results of US Non-Farm Payrolls for October and, perhaps more importantly, the outcome of next week’s US election. Despite a relative lack of movement the ‘Kiwi’ is still tipped to post a 0.5 per cent weekly gain against its US counterpart.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5086, is trading against the Euro in the region of 0.6403 and is trading against the US Dollar in the region of 0.8262

Canadian Dollar

After posting declines earlier in the week the Canadian Dollar was able to strengthen against its American rival. Risk appetite received a boost from yesterday’s report detailing an unexpected rise in a gauge of US manufacturing data and the ‘Loonie’ was able to gain on the majority of its competitors. However, with data forecast to show a slow in Canadian job growth the nation’s currency is expected to drop as trade progresses today.

The Canadian Dollar is presently trading against the Pound in the region of 0.6231, is trading against the Euro in the region of 0.7776 and is trading against the US Dollar in the region of 1.0027

 

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.