Pound hits 3-week high against Euro

Pound Sterling

The Pound has strengthened to a three-week high against the Euro due to the single currency being dragged down by waning investor confidence. The fallout from the Italian Prime minister, Mario Monti’s announcement that he would resign has caused the European markets to become volatile.  As a result of the uncertainty the Euro slipped by 0.2% dropping to 80.37 pence against the Pound.

The Pound is presently trading against the Euro in the region of 1.2406 and is trading against the US Dollar in the region of 1.6083

US Dollar

The ‘Greenback’ is trading bearishly due to the deadlock over the ‘fiscal cliff’ negotiations. President Barrack Obama and US Congressional leaders have been unable to progress in their talks and with time running out the markets are becoming increasingly nervous. Today Dollar traders need to pay attention to the release of the latest Trade Balance Data that is due to be released later this afternoon. Analysts are predicting that the data will come in at -42.4 signalling a contraction. If the figure is worse than expected then we can expect the currency to suffer and extend its bearish trend against the Yen.

The US Dollar is presently trading against the Pound in the region of 0.6220 and is trading against the Euro in the region of 0.7722

The Euro

The Euro has dropped to a three-week low against the Pound and fallen to a four-week low against the Japanese Yen. Against the US Dollar it hit a two-week low. The announcement that Italian Prime Minister Mario Monti would resign ahead of the country’s next election has led investors to seek shelter in safe-havens whilst they assess the impact the announcement could have on the Euro-zone.

The Euro is presently trading against the Pound in the region of 0.8045 and is trading against the US Dollar in the region of 1.2901

Australian Dollar

The ‘Aussie’ has declined against all 16 of its major peers due to business confidence dropping to its lowest level since 2009. The National Australia Bank said the confidence index dropped to -9 in November from -1 in October.

The Australian Dollar is presently trading against the Pound in the region of 0.6518, is trading against the Euro in the region of 0.8098 and is trading against the US Dollar in the region of 1.0480

New Zealand Dollar

The ‘Kiwi’ has hit its highest level in five-weeks against its Australian cousin after house prices in the country rose last month at their fastest rate for five years and consumer spending via debit card increased from the previous month.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5197, is trading against the Euro in the region of 0.6455 and is trading against the US Dollar in the region of 0.8355

Canadian Dollar

The ‘Loonie’ has risen to a seven-week high against the US Dollar as the government approved a multi-billion corporate takeover.  The currency has risen for a fifth day against the US Dollar and strengthened against all 16 of its major peers due to better-than-forecast factory data out of China signalling an increase in demand for Canadian commodities.

The Canadian Dollar is presently trading against the Pound in the region of 0.6305, is trading against the Euro in the region of 0.7826 and is trading against the US Dollar in the region of 1.0139

 

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.