Prior to the publication of a report which is expected to show that UK mortgage approvals advanced to their highest level for over five years, the Pound was in line to record a third 5-day advance against the US Dollar. Sterling retained declines against the Euro. The mortgage data is due for release next week.
GBP/EUR is trading in the region of 1.1581 and GBP/USD is trading in the region of 1.5380
The expectation that next week’s Federal Reserve policy meeting will extinguish speculation regarding reining in stimulus saw the US Dollar soften against the majority of its most traded rivals. The ‘Greenback’ was also adversely affected by forecasts for disappointing employment and growth data. Today’s University of Michigan confidence index could trigger additional US Dollar fluctuations.
USD/GBP is trading in the region of 0.6500 and USD/EUR is trading in the region of 0.7531
Data showing a notable improvement in French consumer confidence supported the Euro as the local session got underway. The common currency continues to trade above 86 pence per Euro and 1.32 US Dollars. Further movement is likely to be limited as we head into the weekend.
EUR/GBP is trading in the region of 0.8635 and EUR/USD is trading in the region of 1.3280
With the likelihood of the Federal Reserve tapering stimulus falling, and speculation that Australia’s central bank will issue a rate cut rising, the ‘Aussie’ posted a weekly advance against the US Dollar but weakened against its New Zealand counterpart. A lack of significant global economic news could limit Australian Dollar movement over the weekend.
AUD/GBP is trading in the region of 0.6026, AUD/EUR is trading in the region of 0.7009 and AUD/USD is trading in the region of 0.9254
New Zealand Dollar
After being bolstered yesterday by the Reserve Bank of New Zealand’s comments regarding bringing an end to quantitative easing, the ‘Kiwi’ continued to trade strongly against the US Dollar during the local session. The New Zealand Dollar was also within touching distance of a 4 ½ year high against its Australian rival.
NZD/GBP is trading in the region of 0.5251, NZD/EUR is trading in the region of 0.6071 and NZD/USD is trading in the region of 0.8076
The commodity-driven Canadian Dollar was able to brush a month-high against its US counterpart in response to crude oil data. The ‘Loonie’ was also supported by figuresshowing that the nation’s average weekly earnings increased by 2.5 per cent in May following April’s 2.2 per cent gain. Although no Canadian data is scheduled for release today, the Canadian Dollar could fluctuate in response to the US University of Michigan Confidence index, which is expected to come in at 84.
CAD/GBP is trading in the region of 0.6329, CAD/EUR is trading in the region of 0.7329 and CAD/USD is trading in the region of 0.9737
These exchange rates were correct as of 9:25 am.