Safe-haven ‘Greenback’ recorded losses

Pound Sterling

Despite data which showed that UK retail sales enjoyed a surge in December the Pound declined against the US Dollar for a third day, edging ever closer to a month low. However, the Pound could experience upward movement in the hours ahead after a report compiled by mortgage lender Halifax showed an expected monthly rise in UK house prices in December. Movement could be tempered by comments accompanying the statistics which indicated that over the course of the year prices are likely to remain fairly flat.

The Pound is presently trading against the Euro in the region of 1.2313 and is trading against the US Dollar in the region of 1.6040

US Dollar

On Friday the US Non-Farm Payrolls report hinted at modest progress in the nation’s economic recovery. As a result risk-appetite increased and the safe-haven ‘Greenback’ recorded losses against several of its main competitors. However, the US Dollar was able to advance against the Pound, achieving close to a one-month high against the British currency. In the days ahead investors will be focusing on several key pieces of economic data from the US, including the unemployment claims figures. Further fluctuations could result from any announcements relating to the US debt ceiling.

The US Dollar is presently trading against the Pound in the region of 0.6235 and is trading against the Euro in the region of 0.7679

Euro

The Euro was able to benefit from a bout of risk taking on Friday following optimistic developments in the US. This week volatility in the common currency could follow the release of several key pieces of economic data for the Eurozone, including today’s Sentix investor confidence figures and producer price index. Industry experts will also be taking an interest in Thursday’s minimum bid rate and European Central Bank press conference.

The Euro is presently trading against the Pound in the region of 0.8121 and is trading against the US Dollar in the region of 1.3029

Australian Dollar

Continued speculation that Japan will need to boost its economy through increased spending benefited the currency of one of its main trading partners. The Australian Dollar was able to post advances against the majority of its most traded peers, rising 0.1 per cent against the US Dollar and 0.2 per cent against fellow South Pacific currency the ‘Kiwi’. With this week’s Australian retail sales and building approvals data forecast to show improvement the ‘Aussie’ could continue to trade higher in the days ahead.

The Australian Dollar is presently trading against the Pound in the region of 0.6536, is trading against the Euro in the region of 0.8048 and is trading against the US Dollar in the region of 1.0483

New Zealand Dollar

As Asian stocks halted their recent advance the New Zealand Dollar fell back, shedding 0.3 per cent against its American rival. The ‘Kiwi’ also posted notable losses against the ‘Aussie’ as the latter currency was boosted by the expectation of positive economic indicators over the course of this week. In the days ahead New Zealand’s trade balance figure is the piece of home-grown data most likely to trigger movement.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5172, is trading against the Euro in the region of 0.6357 and is trading against the US Dollar in the region of 0.8312

Canadian Dollar

On Friday the Canadian Dollar was able to close trade higher following the release of far better-than-forecast Canadian employment figures. The ‘Loonie’ was able to gain by 0.1 per cent against the US Dollar after statistics revealed that the Canadian economy created 40,000 jobs in December. Economists only forecast an increase of 5,000 positions. The unemployment rate also eased down from 7.2 to 7.1, a four year low. Today’s Ivey PMI figure could inspire movement in the Canadian Dollar in the hours ahead.

The Canadian Dollar is presently trading against the Pound in the region of 0.6312, is trading against the Euro in the region of 0.7774 and is trading against the US Dollar in the region of 1.0126

 

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.