Pound rallies against Euro

Pound Sterling

After the IMF announced a more negative outlook for the British economy Sterling dropped to a four-week low against its US counterpart. However, after separate reports showed that retail sales in September rose at the fastest pace seen in 2012 and the UK House-Price Index hit a six-month-high the Pound rallied against the Euro. The British currency was able to advance against its European cousin for the first time in over a week, strengthening by 0.2 per cent.

The Pound is presently trading against the Euro in the region of 1.2388 and is trading against the US Dollar in the region of 1.6011

US Dollar

During trading yesterday the US Dollar was able to make up recently lost ground. As fears over the global economic recovery grew so did investor appetite for safe-haven assets and the ‘Greenback’ was boosted as a result. With little in the way of US economic data on the cards today volatility in the nation’s currency is likely to be caused by developments in the Eurozone. As the week progresses figures for the US trade balance, unemployment claims, PPI and Prelim UoM Consumer Sentiment could cause serious fluctuations in the US Dollar.

The US Dollar is presently trading against the Pound in the region of 0.6235 and is trading against the Euro in the region of 0.7704

Euro

Fears relating to China’s stagnating economy combined with those regarding Greek and Spanish debt led to the common currency recording losses against its main trading partners yesterday. Market movement today is expected to result from announcements focused on the 17-nation currency bloc. Disappointing developments could see the Euro’s bearish relationship with the US Dollar and Japanese Yen continue whilst any indications that Spain will soon seek a bailout could push investor funds towards higher-risk assets.

The Euro is presently trading against the Pound in the region of 0.8068 and is trading against the US Dollar in the region of 1.2927

Australian Dollar

The ‘Aussie’ was able to climb back from yesterday’s three-month low after Eurozone finance ministers created a full time fund to help the currency bloc’s most debt addled countries. Prices for Australia’s primary export, iron ore, also rose to the highest levels seen for almost four weeks. Further market movement could be caused by the South Pacific nation’s plans to sell the longest maturity bonds on government record – 16 ½ year debt. Although the Down-under Dollar has weakened by 3.8 per cent over the course of the last three months, economists have predicted that positive Eurozone developments will underpin the Australian Dollar and stop it sliding lower.

The Australian Dollar is presently trading against the Pound in the region of 0.6368, is trading against the Euro in the region of 0.7886 and is trading against the US Dollar in the region of 1.0216

New Zealand Dollar

As European finance ministers prepared to assemble in Luxembourg to discuss the uncertain situation in Spain the New Zealand Dollar fell against two of its main competitors, the Euro and the US Dollar. The attraction of the Kiwi also dimmed after a report showed that Charge –card spending dropped by more than economists had expected. Today traders will want to keep an eye on Eurozone announcements, particularly those connected to Spain’s economic reforms and the possibility of a bailout for the nation.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5127, is trading against the Euro in the region of 0.6343 and is trading against the US Dollar in the region of 0.8204

Canadian Dollar

With Canadian markets closed yesterday to mark the nation’s Thanksgiving celebrations and no significant Canadian data scheduled for release, movement in the ‘Loonie’ this week will likely result from US data releases. Data to watch out for includes the Initial Jobless Claims, Import/Export prices and International Trade Balance.

The Canadian Dollar is presently trading against the Pound in the region of 0.6397, is trading against the Euro in the region of 0.7926 and is trading against the US Dollar in the region of 1.0251

 

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.