Pound hits 11-week high against the US Dollar

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Pound Sterling

The Pound continues to trade in the region of an 11-week high against the US Dollar this morning, supported by yesterday’s stronger-than-expected manufacturing PMI. Sterling fluctuations are likely to follow the publication of UK construction figures. Economists are expecting the data to show that the sector contracted at a slower pace last month. The ECB’s rate decision, due at 12:45 GMT, will also be of interest.

GBP/EUR is trading in the region of 1.1820 and GBP/USD is trading in the region of 1.5546

US Dollar

At the latest FOMC policy meeting the Fed vowed to maintain its current level of bond purchases and intimated that it was ready to adjust the programme in response to economic conditions. Prior to the FOMC announcement the ‘Greenback’ hit a two-month low against a basket of currencies. Although the currency has since strengthened against its peers, disappointing US employment data ensured that the US Dollar continues trading in the region of 97.2300 against the Japanese Yen – far from April’s high of 99.95 Yen per Dollar.

USD/GBP is trading in the region of 0.6433 and USD/EUR is trading in the region of 0.7603

Euro

After approaching a two-month high against the US Dollar ahead of the European Central Bank’s rate decision the Euro softened slightly this morning as investors speculate on whether the central bank will issue a rate cut to support the Eurozone’s floundering economy. Significant volatility can be expected following ECB President Mario Draghi’s press conference, at 13:30 GMT.

EUR/GBP is trading in the region of 0.8460 and EUR/USD is trading in the region of 1.3150

Australian Dollar

The ‘Aussie’ weakened to 1.0254 against the US Dollar in the wake of the FOMC’s policy announcement and was negatively affected by yet another piece of disappointing news from China. China’s factory sector growth was shown to have eased last month with new export orders declining for the first time this year. As China is Australia’s biggest trading partner, the recent pieces of concerning economic data for the Asian nation have weighed on the Australian Dollar over the past few weeks.

AUD/GBP is trading in the region of 0.6588, AUD/EUR is trading in the region of 0.7778 and AUD/USD is trading in the region of 1.0240

New Zealand Dollar

During the Australasian session the New Zealand Dollar posted significant declines against several of its main counterparts. The ‘Kiwi’ fell in response to less-than-impressive Chinese data, and a 10.2 per cent drop in the price of whole milk powder – a major New Zealand export. Additional ‘Kiwi’ movement is expected to occur in response to the ECB’s influential rate decision.

NZD/GBP is trading in the region of 0.5456, NZD/EUR is trading in the region of 0.6443 and NZD/USD is trading in the region of 0.8480

Canadian Dollar

After strengthening on Tuesday following the publication of stronger-than-forecast Canadian growth data, the ‘Loonie’ weakened during the local session as commodities fluctuated. However, the Canadian Dollar was able to close trade higher following the FOMC’s policy statement. The ECB rate decision and US initial jobless claims figures could inspire ‘Loonie’ movement in the hours ahead.

CAD/GBP is trading in the region of 0.6381, EUR/USD is trading in the region of 0.7546 and CAD/USD is trading in the region of 0.9923

These exchange rates were correct as of 9:05 am

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.