Sterling gained slightly on Euro

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Pound Sterling

With economists expecting that this morning’s UK services PMI report will show contraction for a second month the Pound eased towards a five month low against the US Dollar. However, for a second day Sterling was able to gain slightly on the Euro as the common currency broadly softened as a result of Italian and Spanish political concerns.

The Pound is presently trading against the Euro in the region of 1.1655 and is trading against the US Dollar in the region of 1.5738

US Dollar

The continued backlash of last week’s weaker-than-expected US non-farm payrolls figures and a lack of influential US economic news resulted in the US Dollar posting modest losses against some of its most traded competitors during the early part of trade yesterday. But the American currency was later able to experience a rebound as Eurozone worries and falling global stocks pushed investors towards safe-haven assets. With US non-manufacturing PMI scheduled for release later today and influential Eurozone data also on the cards ‘Greenback’ movement can be expected in the hours ahead.

The US Dollar is presently trading against the Pound in the region of 0.6354 and is trading against the Euro in the region of 0.7402

Euro

For a second day the Euro lost ground against several of its main competitors, most notably the Japanese Yen. Political uncertainty in Italy and allegations of corruption at the heart of the Spanish government pushed the common currency lower whilst the Yen climbed as a result of falling Asian equities. The Euro also fell slightly against the British Pound and US Dollar, but with Eurozone services PMI and retail sales figures coming up further Euro movement is likely.

The Euro is presently trading against the Pound in the region of 0.8580 and is trading against the US Dollar in the region of 1.3514

Australian Dollar

The Reserve Bank of Australia’s decision to hold interest rates at their present 50 year low, and its comments regarding the likelihood of additional easing, caused the Australian Dollar to fall against the majority of its counterparts. Losses were tempered however after reports revealed that the Australian trade deficit narrowed and house-price increases outpaced expectations. Global economic developments will be the main cause of ‘Aussie’ movement today but tomorrow’s Australian retail sales figures are likely to cause the currency volatility.

The Australian Dollar is presently trading against the Pound in the region of 0.6617, is trading against the Euro in the region of 0.7709 and is trading against the US Dollar in the region of 1.0414

New Zealand Dollar

Yesterday the New Zealand Dollar recorded slight losses against its American counterpart and the Japanese Yen as declining global stocks increased the attractiveness of safe-haven assets. Tomorrow key employment data for New Zealand, including 4Q employment change, could trigger ‘Kiwi’ fluctuations.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5357, is trading against the Euro in the region of 0.6244 and is trading against the US Dollar in the region of 0.8428

Canadian Dollar

Yesterday the Canadian Dollar closed trade lower against its US rival as the safe-haven ‘Greenback’ broadly strengthened on Eurozone concerns. The upcoming Italian election and new worries regarding the integrity of the Spanish Prime Minister undermined recently renewed confidence in the 17-nation currency bloc, causing the Euro to decline. The ‘Loonie’ was also pushed lower by worsening commodity prices and disappointing US factory order data. The next piece of influential Canadian news can be expected tomorrow, in the form of Ivey SA PMI figures for January.

The Canadian Dollar is presently trading against the Pound in the region of 0.6359, is trading against the Euro in the region of 0.7408 and is trading against the US Dollar in the region of 1.0012

 

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.