The common currency pared advances

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Pound Sterling

After achieving a one-week high against the Euro and advancing on the US Dollar following stronger than forecast UK services PMI, the Pound was little changed this morning as investors await the outcome of the Bank of England’s two-day policy meeting. Sterling movement will be limited today due to a lack of economic news from the UK, but developments in the Eurozone and US could trigger fluctuations.

The Pound is presently trading against the Euro in the region of 1.1585 and is trading against the US Dollar in the region of 1.5113

US Dollar

The ‘Greenback’ declined against its major rivals for a second day prior to the release of the Federal Reserve’s Beige Book report. Modest losses against the Euro and Pound were largely due to positive UK and Eurozone data bolstering risk appetite. Economists are expecting this afternoon’s US employment change figures to show that the American economy added jobs in February. This morning Eurozone GDP data could trigger movement, but the Bank of Canada’s rate decision is also of interest.

The US Dollar is presently trading against the Pound in the region of 0.6616 and is trading against the Euro in the region of 0.7665

Euro

Although the Euro posted initial gains against its currency rivals following better-than-expected services PMI and retail sales data, the common currency pared advances prior to this morning’s potentially volatile GDP figures for the region. If the 17-nation currency bloc is shown to have contracted by more-than-estimated the Euro could drop in the hours ahead. The ECB is broadly expected to hold its benchmark rate at the current level of 0.75 when it meets this week. Revised economic forecasts are also anticipated.

The Euro is presently trading against the Pound in the region of 0.8632 and is trading against the US Dollar in the region of 1.3047

Australian Dollar

The Australian Dollar was able to rise for a second day after the nation’s GDP data revealed economic expansion of 0.6 per cent in the fourth quarter. Growth for the third quarter was also upwardly revised from 0.5 per cent to 0.7 per cent. Later today the Australian AiG Performance of Construction Index could inspire additional movement.

The Australian Dollar is presently trading against the Pound in the region of 0.6794, is trading against the Euro in the region of 0.7876 and is trading against the US Dollar in the region of 1.0280

New Zealand Dollar

The ‘Kiwi’ was able to extend previous gains after fourth quarter economic growth in Australia, one of New Zealand’s main trading partners, was shown to be stronger than expected. Rising dairy prices also lent support to the New Zealand Dollar. The ‘Kiwi’ was able to climb against its US and Japanese rivals, also posting gains against the Euro and British Pound. Against the broadly strengthening ‘Aussie’ it was largely unchanged.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5505, is trading against the Euro in the region of 0.6350 and is trading against the US Dollar in the region of 0.8326

Canadian Dollar

After hovering in the region of an eight-month low against the US Dollar for almost a week the ‘Loonie’ can expect to experience significant movement this afternoon. Although the Bank of Canada is not expected to issue a rates cut, the tone of the statement accompanying the announcement will be of interest. US data, along with the Canadian Ivey PMI, could also cause movement.

The Canadian Dollar is presently trading against the Pound in the region of 0.6436, is trading against the Euro in the region of 0.7462 and is trading against the US Dollar in the region of 0.9745

These exchange rates were correct as of 9:05 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.