Significant Euro movement expected today

money_euros

Pound Sterling

Yesterday the Pound was able to achieve a five-week high against the Euro after news of a controversial levy on bank deposits in Cyprus caused the common currency to broadly soften. Fluctuations can be expected today following the release of UK CPI figures for February, which came in at an increase of 2.8 per cent as forecast, but news from the Eurozone is likely to be responsible for significant marketplace volatility.

The Pound is presently trading against the Euro in the region of 1.1649 and is trading against the US Dollar in the region of 1.5074

US Dollar

The safe-haven US Dollar climbed on the majority of its most traded rivals during local trade as investors turned away from risky assets in the face of uncertainty in the Eurozone. This afternoon’s US housing data, including Building Permits and Housing Starts could also inspire ‘Greenback’ movement.

The US Dollar is presently trading against the Pound in the region of 0.6633 and is trading against the Euro in the region of 0.7730

Euro

This afternoon’s vote on the levy of Cypriot Bank deposits is likely to trigger significant Euro movement today. The common currency has already broadly declined as a result of fears that the potential action in Cyprus could set a dangerous precedent. The Euro remains close to a three-month low against the US Dollar. Economic sentiment data for Germany will also be of interest.

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 1.2934

Australian Dollar

In the minutes of the RBA’s most recent policy meeting the central bank’s deputy governor defended the strength of the ‘Aussie’, commenting that its higher exchange rate was helping to contain inflation and lower interest rates. Consequently the Australian Dollar modestly strengthened against the majority of its most traded peers. In the hours ahead ‘Aussie’ movement could occur in response to developments in the Eurozone.

The Australian Dollar is presently trading against the Pound in the region of 0.6872, is trading against the Euro in the region of 0.8020 and is trading against the US Dollar in the region of 1.0367

New Zealand Dollar

After Bill English, New Zealand’s finance minister, asserted that the ‘Kiwi’ was overvalued and that the government could do little to lower it the New Zealand Dollar fell, posting losses against several of its most traded peers. While news from Cyprus will be the main focus of the day this evening’s Current Account Balance figures for New Zealand could also cause ‘Kiwi’ movement.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5467, is trading against the Euro in the region of 0.6369 and is trading against the US Dollar in the region of 0.8239

Canadian Dollar

The ‘Loonie’ sank to a week low against the US Dollar as investors lost their appetite for risk in the face of concerning developments in the Eurozone. With US housing data and Canadian manufacturing shipments/wholesale sales figures due for release this afternoon the Canadian Dollar could see further movement.

The Canadian Dollar is presently trading against the Pound in the region of 0.6486, is trading against the Euro in the region of 0.7556 and is trading against the US Dollar in the region of 0.9776

These exchange rates were correct as of 9:38 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.