The British currency broadly strengthened

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Pound Sterling

Ahead of the release of UK’s Services PMI the Pound climbed modestly against the Dollar but was little changed against the Euro. The British currency broadly strengthened yesterday after the UK construction sector unexpectedly returned to growth. A positive services figure could bode well for the nation’s second quarter growth.

GBP/EUR is trading in the region of 1.1717 and GBP/USD is trading in the region of 1.5328

US Dollar

During local trade the ‘Greenback’ advanced on several of its most traded peers after the US budget deficit expanded by less than forecast. The safe-haven currency pushed back above 100 Yen per Dollar as investors await the outcome of Friday’s employment report. A positive result could lead the Federal Reserve to consider easing its current level of stimulus.

USD/GBP is trading in the region of 0.6524 and USD/EUR is trading in the region of 0.7649

Euro

Volatility is on the cards for the Euro today as several pieces of key data are published. Eurozone/German Services PMI (which came in below forecasts) and Eurozone GDP figures are likely to cause considerable movement. A report issued earlier this morning also showed that Italian Services PMI dropped to 46.5 in May, rather than rising to 47.5 as expected.

EUR/GBP is trading in the region of 0.8533 and EUR/USD is trading in the region of 1.3078

Australian Dollar

With a disappointing domestic growth report fuelling speculation regarding the Reserve Bank of Australia cutting rates, the ‘Aussie’ dropped against its rivals, extending earlier losses against the US Dollar by 0.8 per cent. Australian GDP expanded by 2.5 per cent in the first quarter rather than the 2.7 per cent growth expected.

AUD/GBP is trading in the region of 0.6249, AUD/EUR is trading in the region of 0.7325 and AUD/USD is trading in the region of 0.9578

New Zealand Dollar

Although the ‘Kiwi’ strengthened against its peers after the OECD gave New Zealand a positive economic outlook and the Reserve Bank of New Zealand held the benchmark rate at its previous level, the South Pacific currency later shed gains. The New Zealand Dollar declined in response to disappointing economic news from Australia, a key trading partner.

NZD/GBP is trading in the region of 0.5216, NZD/EUR is trading in the region of 0.6119 and NZD/USD is trading in the region of 0.8002

Canadian Dollar

After Canada posted a merchandise trade deficit for a 16th consecutive month the ‘Loonie’ broadly softened. The currency was also adversely affected by fluctuating commodity prices. Canadian Dollar movement could occur today in response to domestic building permit data.

CAD/GBP is trading in the region of 0.6308, CAD/EUR is trading in the region of 0.7392 and CAD/USD is trading in the region of 0.9677

These exchange rates were correct as of 9:20 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.