Although a report published this morning showed that UK house prices slipped in August, Sterling continued to trade within touching distance of a two-month high against the US Dollar and was little changed against the Euro. In a fairly light news week, Pound movement is most likely to be driven by movement in the Eurozone and US.
GBP/EUR is trading in the region of 1.1729 and GBP/USD is trading in the region of 1.5632
One again, US data will be a major driver of market movement this week. Any positive news will stoke speculation regarding the Federal Reserve tapering stimulus while any negative news will lessen the odds of the easing being reduced in September. Although global data is rather sparse today, the publication of the Federal Open Market Committee’s policy meeting minutes on Wednesday will be of particular interest.
USD/GBP is trading in the region of 0.6398 and USD/EUR is trading in the region of 0.7506
With economists forecasting that this week’s German and Eurozone manufacturing/services PMI will show improvement, the Euro was able to approach a week-high against the US Dollar as the local session opened. Common currency movement could be provoked today after the publication of the European Central Bank’s monthly report.
EUR/GBP is trading in the region of 0.8528 and EUR/USD is trading in the region of 1.3326
During Australasian trading the ‘Aussie’ hit a three-week high against its US counterpart as economists speculated on the content of minutes from the Reserve Bank of Australia’s recent meeting. It is thought that the minutes may signal that the RBA isn’t in a rush to slash interest rates.
AUD/GBP is trading in the region of 0.5887, AUD/EUR is trading in the region of 0.6908 and AUD/USD is trading in the region of 0.9198
New Zealand Dollar
The expectation that the Reserve Bank of New Zealand will begin increasing rates in the near future helped the ‘Kiwi’ gain on the majority of its rivals during the local session. The New Zealand Dollar was also supported by the news that the South Pacific nation’s performance services index surged from 55.1 to 58.1.
NZD/GBP is trading in the region of 0.5207, NZD/EUR is trading in the region of 0.6095 and NZD/USD is trading in the region of 0.8129
The ‘Loonie’ experienced a fairly bearish five days last week as Canadian data disappointed and speculation regarding the Federal Reserve tapering stimulus fluctuated. Canadian news to watch out for this week includes Thursday’s retail sales figures and Friday’s CPI data.
CAD/GBP is trading in the region of 0.6196, CAD/EUR is trading in the region of 0.7267 and CAD/USD is trading in the region of 0.9678
These exchange rates were correct as of 9:10 am