Sterling’s declines continued

foreign_exchange_rates

Pound Sterling

After the Bank of England forecast sluggish UK economic growth in its inflation report the Pound slid against its main competitors, notably hitting a six-month low against the US Dollar. Sterling’s declines continued this morning as the UK prepares to sell off five-year government securities worth 4 billion Pounds. However, disappointing developments in the Eurozone could allow the Pound to gain on the Euro in the hours ahead.

The Pound is presently trading against the Euro in the region of 1.1563 and is trading against the US Dollar in the region of 1.5492

US Dollar

The Dollar was able to hold on to its recent gains after the Bank of Japan acted as expected by economists and kept its policy steady. The ‘Greenback’ could move higher today in light of negative data for the Eurozone, and the American currency could experience additional movement if this afternoon’s initial jobless claims data reveals improvement in the labour market. Investor’s will also be looking ahead to tomorrow’s volatile G-20 gathering.

The US Dollar is presently trading against the Pound in the region of 0.6453 and is trading against the Euro in the region of 0.7462

Euro

Despite posting significant gains yesterday the Euro plummeted this morning after Portugal’s jobless rate was shown to have risen to historic levels. Additional data also showed that GDP in France and Germany, the Eurozone’s largest economies, contracted by more than forecast in the fourth quarter of last year. These disappointing developments (which intimate that economic recovery in the currency bloc may be further off than forecast) caused the Euro to drop against the majority of its most traded peers.

The Euro is presently trading against the Pound in the region of 0.8647 and is trading against the US Dollar in the region of 1.3398

Australian Dollar

Although positive developments in New Zealand saw the ‘Aussie’ drop to a two and a half year low against its neighbouring currency, the Australian Dollar was able to rally to a week high against its American rival in the aftermath of improved domestic consumer confidence for the South Pacific nation. The ‘Aussie’ also posted gains against the British Pound after despondent comments from the Bank of England caused Sterling to broadly soften.

The Australian Dollar is presently trading against the Pound in the region of 0.6684, is trading against the Euro in the region of 0.7726 and is trading against the US Dollar in the region of 1.0351

New Zealand Dollar

After a stronger than expected increase in New Zealand’s PMI figures for January the South Pacific currency was able to achieve a two and a half year high against its Australian counterpart. With the odds of the Reserve Bank of New Zealand raising interest rates increased the ‘Kiwi’ also advanced on the US Dollar and Japanese Yen. With no more significant economic news for New Zealand on the cards this week further fluctuations in the currency will be the result of global economic developments.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5458, is trading against the Euro in the region of 0.6250 and is trading against the US Dollar in the region of 0.8499

Canadian Dollar

After climbing against the ‘Greenback’ in response to rising crude oil prices the Canadian Dollar shed its gains to end trade flat. With investors looking ahead to tomorrow’s meeting of the G-20 and Canadian home sales data, movement in the ‘Loonie’ is likely to be limited, although it could occur in response to news from the Eurozone.

The Canadian Dollar is presently trading against the Pound in the region of 0.6450, is trading against the Euro in the region of 0.7461 and is trading against the US Dollar in the region of 0.9995

These exchange rates were correct as of 9:06 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.