As the European session began the Pound was supported by the news that the National Institute of Economic and Social Research has raised its growth forecast for the UK. Niesr now expects Britain’s economy to expand by 1.2 per cent this year and 1.8 per cent next year. Sterling fluctuations are likely to occur in reaction to today’s UK construction PMI.
GBP/EUR is trading in the region of 1.1448 and GBP/USD is trading in the region of 1.5129
With the hope of surprisingly strong employment data supporting the case for the Federal Reserve tapering stimulus in the months ahead, the US Dollar climbed against several of its most traded peers. The safe-haven currency edged away from a six-week low against the Euro on the expectation that today’s report will show that the US unemployment rate declined to 7.5 per cent.
USD/GBP is trading in the region of 0.6606 and USD/EUR is trading in the region of 0.7567
Although the Euro posted widespread declines against its rivals yesterday following comments issued by the ECB regarding holding rates at a lower level for an extended period, the common currency largely recouped losses overnight. Today’s producer price index for the Eurozone could inspire further Euro movement.
EUR/GBP is trading in the region of 0.8732 and EUR/USD is trading in the region of 1.3216
With the Reserve Bank of Australia’s next policy meeting looming the ‘Aussie’ tumbled to its lowest level against the US Dollar for almost three years. The central bank is expected to cut its overnight cash rate target when it meets next week. During the local session the Australian product price index for the second quarter was shown to have gained by 1.2 per cent year-on-year, down from the previous quarters 1.6 per cent advance.
AUD/GBP is trading in the region of 0.5898, AUD/EUR is trading in the region of 0.6747 and AUD/USD is trading in the region of 0.8907
New Zealand Dollar
An absence of significant economic news for New Zealand saw the ‘Kiwi’ retaining recent declines during the local session. While today’s US employment figures are likely to inspire widespread market volatility, investors will also be looking ahead to next week’s unemployment data for New Zealand.
NZD/GBP is trading in the region of 0.5202, NZD/EUR is trading in the region of 0.5952 and NZD/USD is trading in the region of 0.7873
The expectation that today’s US employment data will show a decline in the nation’s unemployment rate caused the Canadian Dollar to post its most significant decline against the ‘Greenback’ for five weeks. If the US unemployment rate does fall to 7.5 per cent as projected, it will add to the case for the Federal Reserve tapering stimulus in the months ahead and the ‘Loonie’ could decline further.
CAD/GBP is trading in the region of 0.6371, CAD/EUR is trading in the region of 0.7293 and CAD/USD is trading in the region of 0.9642
These exchange rates were correct as of 9:20 am