After advancing on the Euro and US Dollar yesterday in response to better than forecast UK manufacturing PMI, the Pound was little changed against its rivals as the European session began. Today’s UK construction PMI figures, which are expected to show improvement, could cause additional Sterling fluctuations.
GBP/EUR is trading in the region of 1.1656 and GBP/USD is trading in the region of 1.5223
A rebound in US manufacturing pushed the ‘Greenback’ to an almost month-high against the Yen. This latest positive piece of data contributed to speculation regarding the likelihood of the Federal Reserve tapering stimulus before the end of the year and helped the US Dollar advance on several of its other most traded peers.
USD/GBP is trading in the region of 0.6570 and USD/EUR is trading in the region of 0.7658
During the North American session the Euro strengthened against the Pound, briefly pushing through the resistance level of 86 pence per Euro. The common currency could experience additional movement in the hours ahead following the publication of the Eurozone’s producer price index for May.
EUR/GBP is trading in the region of 0.8580 and EUR/USD is trading in the region of 1.3059
After the Reserve Bank of Australia released its latest rate decision/policy statement, the ‘Aussie’ fell against its US counterpart. The central bank highlighted the Australian Dollar’s recent declines, but kept rates unchanged. Several pieces of key Australian data, including the AiG performance of service index, national trade balance figures and a retail sales report, could trigger ‘Aussie’ volatility tomorrow.
AUD/GBP is trading in the region of 0.6032, AUD/EUR is trading in the region of 0.7037 and AUD/USD is trading in the region of 0.9193
New Zealand Dollar
With the Australian Dollar broadly softening in response to the Reserve Bank of Australia’s latest policy statement the ‘Kiwi’ was able to jump to 84.98 Australian cents. A report issued during the local session showed that commodity prices in New Zealand declined by 3.7 per cent in June, largely as a result of falling milk powder prices – although that was offset by the New Zealand Dollar’s depreciation. With influential domestic data thin on the ground this week, ‘Kiwi’ movement is likely to be restrained but could occur in response to US news.
NZD/GBP is trading in the region of 0.5122, NZD/EUR is trading in the region of 0.5960 and NZD/USD is trading in the region of 0.7797
‘Loonie’ fluctuations were restrained yesterday as domestic markets were closed for a national holiday. The commodity-driven currency continues to trade just above 95 US cents under the weight of Canadian economic growth concerns.
CAD/GBP is trading in the region of 0.6254, CAD/EUR is trading in the region of 0.7290 and CAD/USD is trading in the region of 0.9519
These exchange rates were correct as of 9:15 am