Sterling rallied following strong data

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Pound Sterling

The Pound declined against the US Dollar for the first time in three-days and weakened against the Euro due to economists expecting that the latest retails sales data will show signs of a slowdown. Sterling rallied against the majority of its peer’s yesterday afternoon after Bank of England policy makers voted unanimously against expanding their stimulus program. Retail sales are expected to rise by just 0.3% in June compared to the 2.1% rise recorded in May.

Also supporting the Pound was the release of data which showed that unemployment in the UK fell by 57,000 to 2.51 million in the three months to May. According to the office for National Statistics the country’s unemployment rate held steady at 7.8%. The number of people claiming job seekers allowance in June also declined, falling by 21,000 to 1.48 million it’s fastest fall in three years.

GBP/EUR is trading in the region of 1.1573 and GBP/USD is trading in the region of 1.5164

US Dollar

The ‘Greenback’ has strengthened after rallying against its peers. Yesterday saw the Dollar fall against its peers after Federal Reserve Chairman Ben Bernanke told Congress at his testimonial that the Central Bank’s monetary easing programme is not set in stone. Dollar traders should keep an eye on the release of the latest initial jobless claims figures due for release later this afternoon.

USD/GBP is trading in the region of 0.6594 and USD/EUR is trading in the region of 0.7633

Euro

The Euro is little changed against the Pound following yesterday’s decline. The EUR/GBP pair had moved aggressively lower following the release of data showing a unified Bank of England policy committee regarding the Bank’s quantitative easing programme and other strong UK data.

EUR/GBP is trading in the region of 0.8639 and EUR/USD is trading in the region of 1.3101

Australian Dollar

The ‘Aussie’ fell against a number of its peers after the Australian business confidence index for the next three months fell to minus 1 in the second quarter from the 2 in the previous three-month period.

AUD/GBP is trading in the region of 0.6032, AUD/EUR is trading in the region of 0.6983 and AUD/USD is trading in the region of 0.9148

New Zealand Dollar

The ‘Kiwi’ is little changed following yesterday’s comments made by Fed Chairman Ben Bernanke. Consumer confidence in New Zealand fell this month to 119.8 from a three-year high of 123.9 in June. It is thought rises in petrol prices and mortgages is the main cause.

NZD/GBP is trading in the region of 0.5185, NZD/EUR is trading in the region of 0.6002 and NZD/USD is trading in the region of 0.7864

Canadian Dollar

The ‘Loonie’ remains weaker against its US relation after Bank of Canada Governor Stephen Poloz said that the nation’s economy has significant slack and inflation remains muted, limiting the possibility of an interest rate increase.  Tomorrow sees the release of a plethora of Canadian data, including the latest Consumer Price Index.

CAD/GBP is trading in the region of 0.6319, CAD/EUR is trading in the region of 0.7314 and CAD/USD is trading in the region of 0.9583

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.