Pound lines up a second five-day gain on the US Dollar and Euro

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Pound Sterling

With the UK’s economic outlook bolstered by this week’s better-than-forecast retail sales and employment figures, the Pound is in line to post a second five-day gain on the US Dollar and Euro. Yesterday Sterling achieved an eight-week high against the Dollar, although the currency has since eased away from its high of $1.5652. An absence of UK news could limit Pound movement before the weekend.

GBP/EUR is trading in the region of 1.1712 and GBP/USD is trading in the region of 1.5634

US Dollar

Yesterday’s surprising US initial jobless claims report saw the ‘Greenback’ advance on peers including the Yen and Euro. The safe-haven US Dollar is now headed for its most significant five-day advance against its Asian counterpart for a month. If US consumer confidence and housing starts increase as expected, the ‘Greenback’ could extend gains before the weekend.

USD/GBP is trading in the region of 0.6399 and USD/EUR is trading in the region of 0.7492

Euro

Although the Euro has been supported this week by positive news from the Eurozone, encouraging data from the US and UK has left the common currency weaker against the ‘Greenback’ and Pound as the week comes to a close. Additional Euro fluctuations could occur today in response to Eurozone CPI data, out at 10:00 GMT.

EUR/GBP is trading in the region of 0.8538 and EUR/USD is trading in the region of 1.3347

Australian Dollar

After a fairly bearish week for the ‘Aussie’ the South Pacific currency ended the local session weaker against several of its main counterparts. Speculation that next week’s minutes from the latest Reserve Bank of Australia meeting will offer hints of a future rate cut is likely to wear on the currency over the weekend.

AUD/GBP is trading in the region of 0.5860, AUD/EUR is trading in the region of 0.6877 and AUD/USD is trading in the region of 0.9166

New Zealand Dollar

After a magnitude 6.6 earthquake rocked central New Zealand, the nation’s currency plummeted and its stock exchange had to close temporarily. Before the natural disaster the ‘Kiwi’ was on track for a second weekly advance against the US Dollar.

NZD/GBP is trading in the region of 0.5161, NZD/EUR is trading in the region of 0.6059 and NZD/USD is trading in the region of 0.8062

Canadian Dollar

Ongoing speculation regarding the US Federal Reserve and a potential timeline for tapering stimulus caused ‘Loonie’ fluctuations yesterday. The currency advanced after the conflict in Egypt pushed oil to a two-week high, but shed gains after US initial jobless claims dropped. Today’s US news can be expected to inspire further ‘Loonie’ fluctuations.

CAD/GBP is trading in the region of 0.6208, CAD/EUR is trading in the region of 0.7275 and CAD/USD is trading in the region of 0.9709

These exchange rates were correct as of 9:10 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.