Sterling slipped to 85.40 against the Euro

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Pound Sterling

After achieving close to a three-week high against the Euro yesterday on the strength of better-than-expected UK employment figures the Pound weakened against the common currency this morning. Sterling slipped to 85.40 against the Euro ahead of a UK government debt sale. The Pound was little changed against the US Dollar.

GBP/EUR is trading in the region of 1.1737 and GBP/USD is trading in the region of 1.5668

US Dollar

The ‘Greenback’ weakened considerably against the Yen overnight, falling below 94 per Dollar for the first time in 8 weeks. The Yen broadly strengthened as the World Bank cut its global growth forecast, inspiring a bout of risk aversion, and Japanese investors severed holdings of overseas bonds for a fourth week. The US Dollar is in line to experience significant volatility this afternoon following the publication of advance US retail sales data.

USD/GBP is trading in the region of 0.6382 and USD/EUR is trading in the region of 0.7489

Euro

The Euro strengthened against both the Pound and US Dollar overnight. However, the common currency could fluctuate today as a result of the publication of the ECB’s monthly report and as an Italian bond sale gets underway. However, movement in the EUR/USD pairing is most likely to result from this afternoon’s advance US retail sales figures.

EUR/GBP is trading in the region of 0.8520 and EUR/USD is trading in the region of 1.3349

Australian Dollar

With the World Bank cutting the global growth outlook and investors looking to safe-haven currencies in the wake of market volatility, the ‘Aussie’ fell against the US Dollar. The commodity-driven currency had enjoyed a brief rally earlier in the session as the Australian unemployment rate came in lower than expected.

AUD/GBP is trading in the region of 0.6061, AUD/EUR is trading in the region of 0.7095 and AUD/USD is trading in the region of 0.9477

New Zealand Dollar

After the Reserve Bank of New Zealand slashed its estimates for economic growth and opted to keep its benchmark interest rate at 2.5 per cent the ‘Kiwi’ declined against several of its most traded peers. The tone of the RBNZ’s economic statement was not as hard-line as many industry experts expected, although the central bank did reiterate its willingness to take measures to devalue the ‘overvalued’ New Zealand Dollar. Today’s New Zealand Performance of Manufacturing Index could inspire additional ‘Kiwi’ movement.

NZD/GBP is trading in the region of 0.5060, NZD/EUR is trading in the region of 0.5916 and NZD/USD is trading in the region of 0.7947

Canadian Dollar

Although the Canadian Dollar approached a two-week high against its US counterpart during the local session, the currency dipped and ended trade slightly lower as investors looked ahead to today’s influential advance US retail sales data. The Canadian new housing price index, scheduled for release at 13:30 GMT, could be responsible for further ‘Loonie’ fluctuations.

CAD/GBP is trading in the region of 0.6266, CAD/EUR is trading in the region of 0.7353 and CAD/USD is trading in the region of 0.9816

These exchange rates were correct as of 9:25 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.