Quiet news day may limit Pound movement

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Pound Sterling

After achieving a four-month high against the US Dollar last week on the back of several pieces of better than expected UK economic news the Pound was little changed this morning following the publication of an industry report showing that UK home sellers raised asking prices in June. Sterling was also little changed against the Euro. Although a quiet news day may limit Pound movement in the hours ahead, fluctuations are likely to occur tomorrow after UK CPI and PPI figures are released.

GBP/EUR is trading in the region of 1.1781 and GBP/USD is trading in the region of 1.5713

US Dollar

The ‘Greenback’ climbed against rivals including the Yen and Euro prior to the Federal Reserve’s highly anticipated policy meeting. The two-day gathering (which begins tomorrow) may end speculation regarding when the central bank will begin to taper easing. It is expected that tomorrow’s US CPI report will show that the cost of living in the US rose for the first time in two months.

USD/GBP is trading in the region of 0.6364 and USD/EUR is trading in the region of 0.7506

Euro

Although the Euro edged lower against the US Dollar as the European session opened on Monday, movement in the common currency is likely to be limited ahead of the Federal Reserve’s policy meeting. The Euro was able to climb against the Yen as demand for the Asian asset decreased as major stocks advanced. The common currency is likely to fluctuate tomorrow after the German/Eurozone ZEW economic surveys are released.

EUR/GBP is trading in the region of 0.8489 and EUR/USD is trading in the region of 1.3337

Australian Dollar

During local trade the ‘Aussie’ was able to extend recent gains against the US Dollar as investors speculate on the likely content of minutes from the Reserve Bank of Australia’s recent policy meeting. The Federal Reserve’s policy meeting is also expected to cause Australian Dollar volatility this week.

AUD/GBP is trading in the region of 0.7211, AUD/EUR is trading in the region of 0.7211 and AUD/USD is trading in the region of 0.9625

New Zealand Dollar

The ‘Kiwi’ climbed against the US Dollar and achieved its highest level against the Australian Dollar this month after New Zealand’s consumer confidence was shown to have advanced to a three-year high. Wednesday’s domestic GDP figures may well be the catalyst for additional New Zealand Dollar movement.

NZD/GBP is trading in the region of 0.5150, NZD/EUR is trading in the region of 0.6065 and NZD/USD is trading in the region of 0.8089

Canadian Dollar

As last week came to a close the Canadian Dollar ended trade modestly lower against its US counterpart after losing ground as a result of weaker-than-anticipated manufacturing data. Canadian existing home sales is the domestic data to watch out for today.

CAD/GBP is trading in the region of 0.6278, CAD/EUR is trading in the region of 0.7386 and CAD/USD is trading in the region of 0.9851

These exchange rates were correct as of 9:15 am

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.