Sterling sunk to a 13-month low

money_euros

Pound Sterling

Future governor of the Bank of England Mark Carney yesterday commented that additional monetary easing is a feasible possibility for central banks around the globe if such action should prove necessary. As a consequence of these comments Sterling sunk to a 13-month low against the Euro, but remained little changed against the US Dollar. However, this morning the Pound was able to rebound slightly in light of data which is expected to show a modest increase in UK mortgage approvals in November.

The Pound is presently trading against the Euro in the region of 1.1679 and is trading against the US Dollar in the region of 1.5712

US Dollar

With this afternoon’s US consumer confidence report expected to show a decline, and with investors reducing bets that the Federal Reserve’s current meeting will result in an adjustment to its asset buying program, the ‘Greenback’ fell against several of its most traded peers. Notably, the American currency is edging closer to an 11 month low against the Euro.

The US Dollar is presently trading against the Pound in the region of 0.6363 and is trading against the Euro in the region of 0.7433

Euro

The positive news for the Eurozone continued today as a German consumer confidence survey, compiled by GfK SE, inferred a stronger-than-forecast rebound in optimism for the largest economy in the 17 nation currency bloc. Following the news the Euro gained slightly on a broadly softening US Dollar, but still posted a mild decline against the Pound. Eurozone consumer confidence figures will be the main point of interest tomorrow but developments in the US could also trigger movement.

The Euro is presently trading against the Pound in the region of 0.8559 and is trading against the US Dollar in the region of 1.3453

Australian Dollar

As Asian stocks leapt ahead Australian bonds fell behind, upping their benchmark 10-year yields to a four month high and allowing the Australian currency to gain. The ‘Aussie’ was further boosted by a report showing the most impressive rebound in business confidence in the nation for ten years, and traded higher against all but two of its key competitors. The next piece of influential economic news for Australia comes in the form of Thursday’s new home sales figures.

The Australian Dollar is presently trading against the Pound in the region of 0.6656, is trading against the Euro in the region of 0.7774 and is trading against the US Dollar in the region of 1.0458

New Zealand Dollar

With bonds in both New Zealand and Australia declining, and the former nation’s trade deficit narrowing unexpectedly, the ‘Kiwi’ gained against the US Dollar for the first time in three days. According to the Wellington based statistics office, last year New Zealand’s imports exceeded exports by 1.21 billion New Zealand Dollars. This prompted the nation’s Prime Minister to state that the ‘outlook for economic growth remains strong’ – a comment which could continue to benefit the ‘Kiwi’ in the hours ahead.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5324, is trading against the Euro in the region of 0.6166 and is trading against the US Dollar in the region of 0.8362

Canadian Dollar

Yesterday top ratings agency Moody’s Investors Service slashed the credit ratings of six of Canada’s lenders, including the Bank of Nova Scotia. Moody’s cited engorged house prices and high levels of consumer debt as the reason for its cuts, heightening concerns regarding economic growth and causing the ‘Loonie’ to shed gains achieved on the back of strengthening commodity prices. Before the close of trade the ‘Loonie’ sunk to almost a six-month low against its American counterpart.

The Canadian Dollar is presently trading against the Pound in the region of 0.6336, is trading against the Euro in the region of 0.7401 and is trading against the US Dollar in the region of 0.9956

 

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.