Sterling achieved a six-week high

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Pound Sterling

Sterling achieved a six-week high against its American counterpart yesterday following the sale of 1.6 billion Pounds of UK bonds. The Pound could experience movement this morning in response to UK construction output figures, which showed a month-on-month increase of 5.5 per cent. A separate report detailed a five-year high in UK house prices in March.

The Pound is presently trading against the Euro in the region of 1.1765 and is trading against the US Dollar in the region of 1.5368

US Dollar

With economists expecting today’s advance retail sales figures to show stagnation the US Dollar dipped against several of its most-traded peers this morning. The safe-haven ‘Greenback’ posted widespread declines yesterday as investors turned their attention to higher-yielding assets.

The US Dollar is presently trading against the Pound in the region of 0.6506 and is trading against the Euro in the region of 0.7653

Euro

The positive outcome of Spanish and Italian bond sales triggered Euro gains, allowing the common currency to hit a six-week high against the US Dollar. Although the Euro edged down slightly this morning further fluctuations can be expected to follow the release of Eurozone industrial production data and the ECB’s announcement of 3 year LTRO repayments. The two-day meeting of EU finance ministers (which begins today) is also of interest.

The Euro is presently trading against the Pound in the region of 0.8499 and is trading against the US Dollar in the region of 1.3062

Australian Dollar

The ‘Aussie’ enjoyed a rebound yesterday, jumping against the majority of its currency competition in response to China’s brightening economic outlook. With economists forecasting that next week’s GDP data will show that the Chinese economy expanded at a rapid pace in the first quarter of 2013 the Australian Dollar was able to achieve a three-month high against the US Dollar.

The Australian Dollar is presently trading against the Pound in the region of 0.6849, is trading against the Euro in the region of 0.8065 and is trading against the US Dollar in the region of 1.0537

New Zealand Dollar

As the prospects of China, one of New Zealand’s main trading partners, improved the New Zealand Dollar strengthened. The South Pacific currency (which reached an eighteen-month high against its US counterpart yesterday) is in line to record a five-day advance of 2.3 per cent.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5600, is trading against the Euro in the region of 0.6591 and is trading against the US Dollar in the region of 0.8619

Canadian Dollar

Although commodities were mixed during local trade, the ‘Loonie’ brushed a 7-week high against the ‘Greenback’ as risk appetite strengthened. Today’s advance US retail sales data is likely to be the main cause of additional Canadian Dollar movement.

The Canadian Dollar is presently trading against the Pound in the region of 0.6432, is trading against the Euro in the region of 0.7565 and is trading against the US Dollar in the region of 0.9886

These exchange rates were correct as of 9:50 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.