Sterling hit a fresh 31-month low

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Pound Sterling

Sterling hit a fresh 31-month low against the US Dollar yesterday as investors processed the long-term impact of the UK losing its AAA credit rating. The Pound is likely to continue trading lower prior to the release of UK 4Q GDP figures on Wednesday. News relating to the Italian elections will also be of interest.

The Pound is presently trading against the Euro in the region of 1.1577 and is trading against the US Dollar in the region of 1.5139

US Dollar

The US Dollar continued to climb on the Pound yesterday as the UK losing its coveted AAA rating took a toll. The safe-haven ‘Greenback’ also strengthened as the troubling political situation in Italy triggered a bout of risk-aversion in the marketplace. Economists are predicting that the US Dollar’s outlook will remain neutral to positive in the days ahead.

The US Dollar is presently trading against the Pound in the region of 0.6605 and is trading against the Euro in the region of 0.7656

Euro

After the Italian election yielded inconclusive results the Euro experienced widespread declines, dropping against the majority of its most traded peers. The political situation has triggered a resurgence of concerns regarding the economic stability of the Eurozone and the Euro could post further declines today if the uncertainty continues.

The Euro is presently trading against the Pound in the region of 0.8635 and is trading against the US Dollar in the region of 1.3083

Australian Dollar

The ‘Aussie’ was able to recoup some of the losses sustained yesterday as gold prices increased, gaining slightly on its US counterpart and more notably on the Yen. The Australian Dollar also benefited from speculation surrounding the replacement of three prominent members of the Japanese central bank. News relating to the Italian election and US data releases are likely to trigger fluctuations in the South Pacific currency over the course of trade.

The Australian Dollar is presently trading against the Pound in the region of 0.6773, is trading against the Euro in the region of 0.7848 and is trading against the US Dollar in the region of 1.0260

New Zealand Dollar

As risk-appetite declined in the face of political uncertainty in Italy the New Zealand Dollar declined against several of its most traded peers, shedding 0.6 per cent against the US Dollar before a modest upward correction left it trading in the region of 83.38 US cents. The ‘Kiwi’ also dropped against the ‘Aussie’ but was able to gain on a broadly softening Euro. Global economic developments and New Zealand’s trade balance figures will affect the ‘Kiwi’ today.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5488, is trading against the Euro in the region of 0.6389 and is trading against the US Dollar in the region of 0.8320

Canadian Dollar

The Canadian Dollar fell for a seventh consecutive day yesterday as markets reacted to the news of Britain’s slashed credit rating and fears regarding Canada’s economic stability continued to grow. Uncertainty concerning the direction US monetary policy will take is also wearing on the ‘Loonie’. Today developments in the US and Europe will be the main causes of ‘Loonie’ movement.

The Canadian Dollar is presently trading against the Pound in the region of 0.6439, is trading against the Euro in the region of 0.7456 and is trading against the US Dollar in the region of 0.9752

These exchange rates were correct as of 9:10 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.