The Pound was trending in a slightly stronger position against both the Euro and US Dollar on Monday in spite of a Rightmove House Price report detailing a steep plunge in property values in August. Over the weekend Bank of England Governor Mark Carney gave the Pound a boost by intimating that real wage growth might not have to rise in line with inflation before interest rates are hiked. With further UK reports lacking today, additional movement in the Sterling exchange rate could be caused by news from the US and Eurozone.
On Friday the US Dollar put on a patchy performance as US Industrial and Manufacturing production figures printed above expected levels but the University of Michigan Confidence Index unexpectedly declined. The measure of sentiment tumbled from 81.8 to 79.2 instead of achieving 82.5 as forecast. As it stands, the US Dollar is trading over 0.25% lower against the Pound. Today’s main piece of market-moving US data is the nation’s NAHB Housing Market Index.
Last week’s dismal growth figures for the Eurozone and its largest economies left the Euro struggling against its most-traded currency counterparts. Prior to the publication of Eurozone trade balance figures the Euro was softer against rivals like the Pound, US Dollar and New Zealand Dollar.
The Australian Dollar was holding steady against its peers on Monday as investors adopted cautious positions ahead of the publication of minutes from the Reserve Bank of Australia’s latest policy meeting. The Australian Dollar is currently trading over 0.25% lower against the Pound.
New Zealand Dollar
Although the New Zealand Dollar began the week trending in a slightly softer position against the Pound, it was supported against the majority of its other main currency counterparts by a strong Performance of Services Index for July. The gauge jumped from a positively revised 55.2 to 58.4.
The Canadian Dollar was bolstered on Friday following a positive revision to its domestic employment data. While it had been previously stated that the Canadian economy added just 200 jobs in July, the nation actually added over 41,000 positions – a change which saw Canada’s unemployment rate come in at 7.0% instead of 7.1%. The ‘Loonie’ largely held gains over the weekend but did drift lower against a supported Pound.
South African Rand
The Pound surged by over 0.4% against the Rand on Monday as investors responded to Bank of England Governor Mark Carney’s comments regarding wage growth and interest rate increases. Economic reports for South Africa are limited until Wednesday when the nation’s inflation data is published.