Pound tracked gains against the Euro

Pound Sterling

For a third consecutive day the Pound tracked gains against the Euro, eventually reaching a two-week high. Sterling’s advance was aided by economist’s predictions that a report scheduled for release today will show UK industrial output rising in October for the first time in three months. The Pound is also on the cusp of a weekly gain against other big rival the US Dollar. US and Eurozone data, including German industrial production and US employment figures, are also likely to cause movement in the Pound today.

The Pound is presently trading against the Euro in the region of 1.2408 and is trading against the US Dollar in the region of 1.6047

US Dollar

Disappointing third quarter GDP figures for the Eurozone dampened risk appetite yesterday, allowing the safe-haven US Dollar to post gains against several of its most traded counterparts. However, the ‘Greenback’ barely progressed against fellow low-risk asset the Japanese Yen after the US unemployment claims figure was better than forecast. Significant fluctuations in the American currency can be expected today as US non-farm payroll and unemployment rate statistics are released. Any announcements relating to the fiscal cliff situation could also affect the ‘Greenback’.

The US Dollar is presently trading against the Pound in the region of 0.6233 and is trading against the Euro in the region of 0.7734

Euro

After dropping to a seven-week low against the US Dollar yesterday the Euro continued to decline against its competitors following a disappointing third quarter GDP figure for the Eurozone. Investors are also remaining cautious after Germany, the largest economy in the 17 nation currency bloc, had its growth forecast cut to 0.7 for 2012 from a previously estimated 1 per cent. German industrial production figures are likely to cause further movement in the common currency over the course of today.

The Euro is presently trading against the Pound in the region of 0.8058 and is trading against the US Dollar in the region of 1.2933

Australian Dollar

Economists are predicting that next week Chinese data will show improvement in the world’s second largest economy. As China is one of Australia’s main trading partners this news caused an upswing in the ‘Aussie’, allowing it to trade close to a two-month high against its US counterpart. The currency found further support from statistics which showed Australia’s trade deficit widened by less than forecast. Volatility in the South Pacific currency could be triggered today if Eurozone economic indicators disappoint and trigger risk aversion.

The Australian Dollar is presently trading against the Pound in the region of 0.6529, is trading against the Euro in the region of 0.8106 and is trading against the US Dollar in the region of 1.0476

New Zealand Dollar

Following a policy meeting yesterday the Reserve Bank of New Zealand asserted that over the next two years the nation’s growth should quicken. The RBNZ also left rates at 2.5 per cent. After the announcement the ‘Kiwi’ briefly hit a month high against its Australian currency rival but fell back to its previous level before the end of trade as positive Australian news saw the ‘Aussie’ broadly strengthen. A lack of influential economic news from the South Pacific today means that movement in the New Zealand Dollar is most likely to result from developments in the US and Eurozone.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5182, is trading against the Euro in the region of 0.6433 and is trading against the US Dollar in the region of 0.8316

Canadian Dollar

The Canadian Dollar held gains made yesterday and benefited from the expectation that today’s Canadian net change in employment and unemployment rate data will show that the nation added 10,000 jobs in November. Prior to the data release the Canadian currency was able to brush a one-month high against its US counterpart. Elsewhere advances in the ‘Loonie’ were limited by a drop in the price of Canada’s biggest export.

The Canadian Dollar is presently trading against the Pound in the region of 0.6286, is trading against the Euro in the region of 0.7799 and is trading against the US Dollar in the region of 1.0085

 

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.