Pound weakened to less than 1.20 against Euro

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Pound Sterling

For the first time in over 8 months the Pound has weakened to less than 1.20 against the Euro. Fears that the UK could be stripped of its AAA credit rating, concerns regarding Britain’s place in the EU and a more optimistic outlook for the Eurozone have all contributed to the Pound’s recent declines. Today investors will be focusing on UK retail sales figures for December.

The Pound is presently trading against the Euro in the region of 1.1932 and is trading against the US Dollar in the region of 1.5949

US Dollar

The US Dollar enjoyed a bullish relationship with several of its peers yesterday following a five-year low in US unemployment claims. Although gains were later limited by a disappointing result for US manufacturing the ‘Greenback’ still posted a significant advance on the British Pound. Volatility could be on the cards later today following the US Prelim UoM Consumer Sentiment figure.

The US Dollar is presently trading against the Pound in the region of 0.6273 and is trading against the Euro in the region of 0.7479

Euro

The Euro gained 0.7 per cent against the US Dollar, and marched towards a 10-month high on its American rival, after Spanish borrowing costs were shown to have fallen at a bond sale. This latest development reaffirmed the more positive outlook ascribed to the currency bloc in recent weeks and allowed the common currency to advance on all of its main competitors. A lack of economic news for the Eurozone means that Euro movement will be limited, but may occur in response to UK and US news.

The Euro is presently trading against the Pound in the region of 0.8378 and is trading against the US Dollar in the region of 1.3364

Australian Dollar

Although a recent report showed that 4Q GDP in China exceeded expectations, improving trade prospects between the Asian nation and Australia, the Australian Dollar shed 0.2 per cent against the US Dollar and was little changed against the Yen. Chinese retail sales and industrial production also gained, upping the odds of the Reserve Bank of Australia holding borrowing costs at their present level next month. The ‘Aussie’ is now in line for a 0.1 per cent weekly decline against the ‘Greenback’. The next piece of volatile Australian data is Thursday’s 4Q CPI figures.

The Australian Dollar is presently trading against the Pound in the region of 0.6586, is trading against the Euro in the region of 0.7861 and is trading against the US Dollar in the region of 1.0504

New Zealand Dollar

Yesterday an unexpected drop in the South Pacific nation’s consumer prices caused the New Zealand Dollar to slump. With the economy struggling the likelihood of the Reserve Bank of New Zealand extending a period of record low interest rates is increasing, a circumstance which triggered declines in the ‘Kiwi’, notably against the US Dollar. With a data-light week ahead for New Zealand ‘Kiwi’ fluctuations are most likely to result from global economic developments.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5225, is trading against the Euro in the region of 0.6246 and is trading against the US Dollar in the region of 0.8344

Canadian Dollar

After slumping close to a two week low against the US Dollar the Canadian Dollar experienced a rebound on the back of optimistic data releases for the world’s largest economy. With the prospects for Canada’s main trading partner improved the ‘Loonie’ climbed up to 98.58. Movement in the commodity driven currency could occur today as a result of this morning’s stream of Chinese data releases as well as developments in the US.

The Canadian Dollar is presently trading against the Pound in the region of 0.6343, is trading against the Euro in the region of 0.7568 and is trading against the US Dollar in the region of 1.0112

 

Laura Barrett
This post was written by
Laura moved from the US to the UK several years ago. As a corporate sales executive for a leading foreign exchange company, Laura has expert knowledge of currency movements and market trends and is able to offer specialist guidance regarding making a trade at the most lucrative time and protecting transactions from currency risk.