Pound headed for a five-day gain against the Euro and US Dollar

Post Date September 13th, 2013
Author
Category Currency News
TorFX

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Pound Sterling

Before the release of UK construction output figures the Pound was headed for a five-day gain against the Euro and US Dollar. Yesterday’s positive testimony from Bank of England Governor Mark Carney pushed the Pound to a seven-month high against the US Dollar, but if today’s US retail sales add to the case for the Federal Reserve tapering quantitative easing Sterling’s advance on its American counterpart could be paired.

GBP/EUR is trading in the region of 1.1896 and GBP/USD is trading in the region of 1.5808

US Dollar

Overnight the US Dollar climbed on several of its most traded rivals. The safe-haven ‘Greenback’ broadly strengthened on the expectation that today’s domestic retail sales report will show improvement, upping the odds of the Federal Reserve trimming stimulus when it meets next week.

USD/GBP is trading in the region of 0.6328 and USD/EUR is trading in the region of 0.7528

Euro

While Eurozone Finance Ministers meet to discuss issues ranging from European unemployment to the possibility of a third bailout for Greece, the Euro began the local session trapped in a bearish relationship with the Pound. The common currency also softened against its US counterpart as investors await the publication of some significant US data.

EUR/GBP is trading in the region of 0.8406 and EUR/USD is trading in the region of 1.3288

Australian Dollar

After weakening yesterday in response to disappointing domestic employment data, the ‘Aussie’ retained declines overnight. The South Pacific asset could post further losses if today’s US reports show the improvement expected.

AUD/GBP is trading in the region of 0.5846, AUD/EUR is trading in the region of 0.6955 and AUD/USD is trading in the region of 0.9238

New Zealand Dollar

The increasing likelihood of the Reserve Bank of New Zealand upping interest rates next year buoyed the ‘Kiwi’ during Australasian trading. Although New Zealand’s consumer confidence index declined by 3.4 per cent and the nation’s performance of manufacturing index slid, the ‘Kiwi’ is still in line to post a weekly gain against almost all of its most traded peers.

NZD/GBP is trading in the region of 0.5134, NZD/EUR is trading in the region of 0.6105 and NZD/USD is trading in the region of 0.8105

Canadian Dollar

For the first time this week the Canadian Dollar slipped against its US counterpart as a surprising decline in US initial jobless claims caused a ‘Greenback’ rally. The ‘Loonie’ had advanced earlier in the local session as Canada’s new housing price index increased by more than expected. Further ‘Loonie’ losses could occur in response to US retail sales data.

CAD/GBP is trading in the region of 0.6120, CAD/EUR is trading in the region of 0.7278 and CAD/USD is trading in the region of 0.9675

These exchange rates were correct as of 09:25 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.