Pound plummets against the US Dollar

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Pound Sterling

Speculation surrounding today’s Bank of England rate decision caused the Pound to plummet against the US Dollar, taking it to an over 2 ½ year low. Sterling also declined against the Euro as investor’s debate whether the British central bank will try and boost economic growth by upping stimulus. The Pound could experience further fluctuations tomorrow following the release of UK inflation data.

The Pound is presently trading against the Euro in the region of 1.1516 and is trading against the US Dollar in the region of 1.4986

US Dollar

Several pieces of volatile US data could trigger movement in the ‘Greenback’ today. Industry experts are forecasting that today’s trade balance figures will reveal that the US trade deficit widened to 42.6 billion Dollars from its three-year low of 38.5 billion. Meanwhile, initial jobless claims data could reveal an 11,000 increase in applications for unemployment insurance. Central bank announcements from the UK and Eurozone will also be of interest.

The US Dollar is presently trading against the Pound in the region of 0.6672 and is trading against the Euro in the region of 0.7684

Euro

With the ECB’s rate announcement imminent the Euro was able to climb from an almost three month low against its American rival, and post gains against the majority of its other most traded peers. The common currency received a boost when top ratings agency Standard & Poor’s upwardly revised Portugal’s credit-rating outlook from negative to stable. Investor’s will be focusing on the ECB’s decision, but this morning’s Spanish bond sale and German factory order data may also cause Euro movement.

The Euro is presently trading against the Pound in the region of 0.8683 and is trading against the US Dollar in the region of 1.3014

Australian Dollar

After declining by the most for a week the Australian Dollar enjoyed a rebound as investors pare bets that the Reserve Bank of Australia will cut rates, despite today’s wider-than-forecast trade deficit figure for the nation. An absence of Australian economic news in the days ahead means that ‘Aussie’ movement is likely to occur in response to global economic developments.

The Australian Dollar is presently trading against the Pound in the region of 0.6847, is trading against the Euro in the region of 0.7885 and is trading against the US Dollar in the region of 1.0262

New Zealand Dollar

A drop in gauges of raw materials and Asian stocks led to the ‘Kiwi’ posting a second day of modest declines against the US Dollar. Today investors will be focusing on manufacturing activity data for New Zealand. Movement could also be triggered by news from the US and Eurozone.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5518, is trading against the Euro in the region of 0.6383 and is trading against the US Dollar in the region of 0.8291

Canadian Dollar

Following the Bank of Canada’s decision to hold interest rates at their present level the ‘Loonie’ broadly softened. The Canadian Dollar lost ground against the majority of its most traded peers as the BoC intimated that rate cuts would not take place in the near future. The ‘Loonie’ was also adversely affected by worse-than-forecast Canadian Ivey PMI. Today’s Canadian building permit data could cause additional ‘Loonie’ declines if it comes in below expectations.

The Canadian Dollar is presently trading against the Pound in the region of 0.6478, is trading against the Euro in the region of 0.7459 and is trading against the US Dollar in the region of 0.9707

These exchange rates were correct as of 9:14 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.