With the Bank of England’s rate decision imminent the Pound was trading in the region of a four-week high against its US counterpart. The British currency broadly strengthened yesterday in response to better-than-expected UK Services PMI. Although economists expect the Monetary Policy Committee to leave rates unaltered and the target for bond purchases unchanged, the tone of the accompanying statement could cause Sterling movement.
GBP/EUR is trading in the region of 1.1769 and GBP/USD is trading in the region of 1.5444
As the European session opened the US Dollar was trading lower against a broadly stronger Pound and bullish Euro. The former currency advanced to a month-high against its US rival on the back of positive domestic data while the latter strengthened ahead of the ECB’s policy meeting. Tomorrow’s US non-farm payrolls data is expected to trigger notable market volatility.
USD/GBP is trading in the region of 0.6480 and USD/EUR is trading in the region of 0.7622
The expectation that the European Central Bank will opt to leave its benchmark rate at its current record low when it meets today allowed the Euro to advance to an almost month-high against the US Dollar. However, the common currency posted a modest decline against a broadly strengthening Yen. Today’s German factory orders and US initial jobless claims could also inspire Euro fluctuations in the hours ahead.
EUR/GBP is trading in the region of 0.8497 and EUR/USD is trading in the region of 1.3120
The ‘Aussie’ continued its downward trend during local trade, falling to its lowest level since 2011 against its US counterpart as a report showed that Australia’s trade surplus narrowed considerably in April due to a fall in the value of exports. The South Pacific nation posted a surplus of 28 million, significantly less than the 180 million expected.
AUD/GBP is trading in the region of 0.6140, AUD/EUR is trading in the region of 0.7227 and AUD/USD is trading in the region of 0.9485
New Zealand Dollar
With demand for higher risk assets tempered by declining Asian stocks, the New Zealand Dollar dropped against the Yen for a third day and posted a modest loss against the US Dollar. An absence of significant economic news for New Zealand means that global news, such as US initial jobless claims, will be largely responsible for ‘Kiwi’ movement.
NZD/GBP is trading in the region of 0.5155, NZD/EUR is trading in the region of 0.6069 and NZD/USD is trading in the region of 0.7947
The Canadian Dollar advanced slightly against its US rival during local trade after a private report hinted at the rate of hiring in the US easing but lost ground against a broadly strengthening Pound. The commodity-driven currency was little changed as the European session opened, and movement is likely to be limited ahead of tomorrow’s influential US non-farm payrolls data. That being said, today’s Canadian Ivey PMI will also be of interest.
CAD/GBP is trading in the region of 0.6267, CAD/EUR is trading in the region of 0.7375 and CAD/USD is trading in the region of 0.9678
These exchange rates were correct as of 9:20 am