Pound hits two-week high against a broadly softening US Dollar

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Pound Sterling

As the European session began the Pound was able to achieve an over two-week high against a broadly softening US Dollar. Sterling benefited from comments issued by Prime Minister David Cameron regarding economic improvement increasing the scope for lowering taxes. The Pound was also trading close to a two-week high against the Euro.

GBP/EUR is trading in the region of 1.1616 and GBP/USD is trading in the region of 1.5285

US Dollar

With expectations regarding the Federal Reserve reining in quantitative easing declining, the US Dollar slumped against all but one of its most traded currency rivals. One industry expert has even asserted that the Fed is unlikely to taper easing until 2016. The ‘Greenback’ could experience additional movement today following the release of US existing home sales figures.

USD/GBP is trading in the region of 0.6545 and USD/EUR is trading in the region of 0.7600

Euro

Assurances that the political situation in Portugal is now under control helped Portuguese bonds rise and the Euro climb on several of its peers. A lack of domestic economic news could limit Euro movement in the hours ahead, but tomorrow’s consumer confidence gauge for the 17-nation currency bloc will be of interest.

EUR/GBP is trading in the region of 0.8607 and EUR/USD is trading in the region of 1.3154

Australian Dollar

The Australian Dollar was able to advance on its US counterpart after the People’s Bank of China ended a floor on borrowing costs, and so improved the South Pacific nation’s trade prospects. The ‘Aussie’ was also boosted by the falling odds of the Fed tapering stimulus and strengthened to 92.13 US cents ahead of Wednesday’s Australian inflation figures.

AUD/GBP is trading in the region of 0.6028, AUD/EUR is trading in the region of 0.7013 and AUD/USD is trading in the region of 0.9210

New Zealand Dollar

As the Australasian session came to a close the New Zealand Dollar was able to consolidate recent gains as Asian stocks advanced. Tomorrow’s trade balance figures for New Zealand could be responsible for further ‘Kiwi’ movement.

NZD/GBP is trading in the region of 0.5185, NZD/EUR is trading in the region of 0.6031 and NZD/USD is trading in the region of 0.7927

Canadian Dollar

A modest increase in commodity prices helped the ‘Loonie’ recoup losses sustained following last week’s tame domestic inflation report. The week’s big piece of Canadian economic news is tomorrow’s retail sales data. Economists are expecting a month-on-month advance of 0.4 per cent in May following April’s 0.3 per cent decline.

CAD/GBP is trading in the region of 0.6321, CAD/EUR is trading in the region of 0.7345 and CAD/USD is trading in the region of 0.9663

These exchange rates were correct as of 9:15 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.