Pound rebounds against the US Dollar

uae_dirham_coins

Pound Sterling

With markets fluctuating wildly overnight in reaction to Federal Reserve Chairman Ben Bernanke’s policy announcement the Pound was able to rebound against the US Dollar. Sterling also edged up against several of its other most traded peers on speculation that its recent drop has been excessive. News from the Eurozone and US is likely to be responsible for additional Pound movement in the hours ahead.

GBP/EUR is trading in the region of 1.1565 and GBP/USD is trading in the region of 1.5080

US Dollar

During the local session Federal Reserve Chairman Ben Bernanke announced that accommodative stimulus would continue until US unemployment and inflation improved. With expectations for tapering disappointed, the US Dollar fell to multi-week lows against several of its most traded currency rivals. Further ‘Greenback’ fluctuations may result from today’s US monthly budget statement.

USD/GBP is trading in the region of 0.6638 and USD/EUR is trading in the region of 0.7674

Euro

Although the Euro surged against the US Dollar overnight as Fed Chairman Ben Bernanke surprised markets with his dovish announcement, the common currency is likely to experience additional volatility today due to the publication of the European Central Bank’s monthly report.

EUR/GBP is trading in the region of 0.8647 and EUR/USD is trading in the region of 1.3032

Australian Dollar

As commodity-driven currencies leapt in response to the news that the Fed would be continuing with stimulus for the foreseeable future the ‘Aussie’ advanced against the US Dollar. The South Pacific asset was able to hit a two-week high against the ‘Greenback’ in spite of data showing an unexpected climb in the Australian unemployment rate.

AUD/GBP is trading in the region of 0.6122, AUD/EUR is trading in the region of 0.7081 and AUD/USD is trading in the region of 0.9230

New Zealand Dollar

Data showing that New Zealand’s manufacturing sector expanded in June supported the ‘Kiwi’ during local trade. The commodity-driven currency had been boosted during the North American session by Fed news and was trading in the region of a three-week high against its US counterpart.

NZD/GBP is trading in the region of 0.5248, NZD/EUR is trading in the region of 0.6063 and NZD/USD is trading in the region of 0.7896

Canadian Dollar

Although the ‘Loonie’ initially climbed against a broadly softening US Dollar in the aftermath of Ben Bernanke’s announcement, the Canadian currency went on to fluctuate and closed the local session moderately higher against the ‘Greenback’. Canadian Dollar movement could occur today in reaction to the release of a domestic housing price index.

CAD/GBP is trading in the region of 0.6389, CAD/EUR is trading in the region of 0.7385 and CAD/USD is trading in the region of 0.9635

These exchange rates were correct as of 9:20 am

Richard Martin
This post was written by
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.