Pound little changed against Euro

Pound Sterling

A third successive month of increases in London property prices marched the Pound to a 0.2 per cent gain on the US Dollar, although Sterling posted little change against the Euro. The release of the Bank of England’s policy meeting minutes on Wednesday is likely to cause the most notable amount of movement in the Pound over the course of the week but fluctuations could also be triggered as a result of developments in Europe and the US.

The Pound is presently trading against the Euro in the region of 1.2450 and is trading against the US Dollar in the region of 1.5898

US Dollar

Although the US Dollar gained on the back of probable monetary easing in Japan and Eurozone economic fears the currency’s advances were limited as confidence in US economic recovery strengthened following the positive meeting between US President Barack Obama and Democratic/Republican policymakers. After the gathering Obama expressed his determination to avoid the fiscal cliff and appeared secure that an alternative course of action could be settled on. Of further interest today are October’s Existing Home Sales figures for the US.

The US Dollar is presently trading against the Pound in the region of 0.6289 and is trading against the Euro in the region of 0.7830

Euro

On Friday the Euro ended a rocky week by trading lower against its main competitors. A great deal of volatility in the common currency can be expected following the results of this week’s Eurogroup meeting, during which a decision should be reached regarding the Greek bailout. Further movement is likely to follow Thursday’s German Flash Manufacturing PMI and Friday’s German Ifo Business Climate figures.

The Euro is presently trading against the Pound in the region of 0.8033 and is trading against the US Dollar in the region of 1.2773

Australian Dollar

The Australian Dollar was boosted by the success of the US fiscal cliff meeting and further buoyed by the increasing likelihood of additional Bank of Japan stimulus, resulting in a 0.3 advance against its US counterpart. The ‘Aussie’ also jumped to a more than 6-week high against the Japanese Yen. Considerable fluctuations can be expected tomorrow following the release of November’s Reserve Bank of Australia’s board minutes.

The Australian Dollar is presently trading against the Pound in the region of 0.6526, is trading against the Euro in the region of 0.8123 and is trading against the US Dollar in the region of 1.0378

New Zealand Dollar

The ‘Kiwi’ dropped against the ‘Aussie’ in anticipation of tomorrow’s publication of the Reserve Bank of Australia’s board minutes and Governor Glenn Stevens’ announcement. It wasn’t all bad news for the New Zealand Dollar though; a more optimistic US economic outlook saw the South Pacific currency trade higher against a few of its major competitors. Little significant economic data for New Zealand means that most of the ‘Kiwi’s movement this week will be triggered by developments in the US and Asia.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5120, is trading against the Euro in the region of 0.6377 and is trading against the US Dollar in the region of 0.8140

Canadian Dollar

The upbeat mood surrounding the fiscal cliff focused meeting of US leaders triggered increased optimism regarding US economic recovery. As a result, the resource-dependent Canadian currency was able to experience a gradual rebound from last week’s lows against the ‘Greenback’. The ‘Loonie’ also advanced against the Euro but dropped against the Australian and New Zealand Dollars. Movement will be tempered this week as investors await Friday and Canada’s Consumer Price Index for October.

The Canadian Dollar is presently trading against the Pound in the region of 0.6295, is trading against the Euro in the region of 0.7836 and is trading against the US Dollar in the region of 1.0009

 

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.