Pound is holding steady against the US Dollar

Pound Sterling

The Pound is holding steady against the US Dollar, and Euro ahead of the release of a report that is expected to show that Britain’s trade deficit narrowed in November. It is expected to show that the trade gap has decreased to £9billion, down from £9.54billion in October. If the report shows a better figure than-expected then we can expect to see the Pound make gains, if it comes in worse-than-expected then we are likely to see it weaken.

US Dollar

The ‘Greenback’ strengthened against most of its currency rivals yesterday due to worse-than- expected data coming out of the Eurozone. German retail sales and factory orders were lower than economists had predicted, leading to risk aversion in the marketplace.

Once again, there is a lack of significant data set to emerge out of the US today, so traders should instead keep an eye on today’s data emerging out of the Eurozone. They will want to pay attention to the German Industrial Production figure. Analysts are forecasting that the indicator will come in significantly higher than last month’s, which if true, is likely to generate risk taking in the marketplace and cause the ‘Greenback’ to give up yesterday’s gains.

Euro

The Euro took moderate losses against its safe-haven rivals yesterday due to the news that the regions’ unemployment rate went up last month, and Germany posted a decline in factory orders. Today, Eurozone news is set to dictate the direction the markets take. Traders should be particularly aware of the latest German Industrial Production figure. As Germany is the Eurozone’s biggest economy, any negative news out of the country has a major impact on the single currency.

Australian Dollar

The ‘Aussie’ extended its run of losses due to government data showing that the nation’s retail sales saw an unexpected decline.  Australian retail sales fell by 0.1% in November; economists had been predicting a rise of 0.3%. The currency was also not helped by a jobs report that showed job vacancies dropped by 6.9%.

New Zealand Dollar

The ‘Kiwi’ rose against all of its major peers after data showed that new building approvals for detached houses surged to its highest level in two years. Permits in New Zealand for dwellings excluding apartments rose 4.6% in November to 1,382, the most since May 2010, the country’s statistics office said.

Canadian Dollar

The ‘Loonie’ has fallen against the US Dollar for the first time in three days as global risk appetite declined. It wasn’t helped by a decline in the price of Canada’s biggest export of crude oil. A decline in the number of newly constructed homes also weighed down on the currency.

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.