Pound weakened to 85.76 pence per Euro

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Pound Sterling

Before the release of a report which revealed that Spain, one of the largest economies in the Eurozone, is more deeply mired in recession than forecast, the Pound resumed its decline against the Euro and weakened to 85.76 pence. The British currency remained largely unchanged against the US Dollar. Additional movement can be expected this morning following the release of UK mortgage approval data, which industry experts expect to show improvement. US news is also likely to trigger fluctuations.

The Pound is presently trading against the Euro in the region of 1.1652 and is trading against the US Dollar in the region of 1.5732

US Dollar

Following the publication of a disappointing US consumer confidence figure the ‘Greenback’ posted losses against several of its most traded rivals over the course of trade, notably the Swiss Franc and the Japanese Yen. With more influential data, including US 4Q GDP, on the cards this afternoon substantial market volatility is likely.
The US Dollar is presently trading against the Pound in the region of 0.6357 and is trading against the Euro in the region of 0.7407

Euro

Earlier today the Euro was boosted by the expectation that a report due for release later this morning will show an improvement in consumer confidence in the 17-nation currency bloc. This led to the common currency trading above 1.35 US Dollars for the first time in over a year, despite a separate report showing that Spain’s recession deepened by more-than-expected. The Euro’s advance was also aided by the anticipation surrounding today’s Federal Open Market Committee policy statement. In light of influential US and Eurozone news considerable market volatility can be expected over the course of today.

The Euro is presently trading against the Pound in the region of 0.8583 and is trading against the US Dollar in the region of 1.3505.

Australian Dollar

With Asian stocks continuing to fall prior to the conclusion of the Federal Reserve’s policy meeting the ‘Aussie’ Dollar remained bolstered, shedding just 0.1 per cent of its recent 0.6 per cent gain against the US Dollar. The outcome of the US monetary policy meeting is the main point of interest for investors today. If the Federal Reserve decides to commit to its quantitative easing programme for the foreseeable future it could lend support to the Australian Dollar. Tomorrow movement could follow Australian news, including new home sales statistics for the nation.

The Australian Dollar is presently trading against the Pound in the region of 0.6638, is trading against the Euro in the region of 0.7739 and is trading against the US Dollar in the region of 1.0461

New Zealand Dollar

Speculation that the latest policy meeting of the Reserve Bank of New Zealand will result in action being taken to curb the strength of the nation’s currency caused the ‘Kiwi’ to decline against all of its main competitors, despite building approvals in New Zealand hitting a 4 ½ year high in December. Today movement in the South Pacific currency can be expected to follow economic developments both at home and abroad.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5305, is trading against the Euro in the region of 0.6193 and is trading against the US Dollar in the region of 0.8351.

Canadian Dollar

After days of losses the Canadian Dollar was finally able to advance against its American counterpart. The ‘Loonie’s four-week high against the ‘Greenback’ was triggered by the expectation that tomorrow’s data will reveal that the Canadian Dollar expanded twice as much in November as in October, growing by 0.2 per cent rather than the previous months 0.1 per cent. Global economic developments could inspire movement over the course of today.

The Canadian Dollar is presently trading against the Pound in the region of 0.6344, is trading against the Euro in the region of 0.7392 and is trading against the US Dollar in the region of 0.9983

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.