Last week the Pound was bolstered by surprisingly strong construction PMI for the UK. If today’s services PMI also surprises to the upside Sterling’s rally against the Euro and US Dollar could continue.
GBP/EUR is trading in the region of 1.1521 and GBP/USD is trading in the region of 1.5306
During Asian trading the ‘Greenback’ declined against the Yen for a second day. The US Dollar also begins the week softer against several of its other main currency rivals as last week’s disappointing employment data continues to drive speculation regarding when the Federal Reserve will taper stimulus. The ISM non-manufacturing composite index is the US news to watch out for today.
USD/GBP is trading in the region of 0.6542 and USD/EUR is trading in the region of 0.7527
The Euro began the European session stronger against the US Dollar but moderately weaker against the Pound. With German services PMI coming in significantly below expectations, the common currency could extend declines against its British rival, although services PMI for the Eurozone was slightly better than forecast.
EUR/GBP is trading in the region of 0.8677 and EUR/USD is trading in the region of 1.3286
A report showing an unexpected halt in Australian retail sales growth saw the ‘Aussie’ tumble to an almost three-year low against its US counterpart. The South Pacific asset will remain under pressure until the Reserve Bank of Australia issues its rate decision tomorrow.
AUD/GBP is trading in the region of 0.5818, AUD/EUR is trading in the region of 0.6703 and AUD/USD is trading in the region of 0.8901
New Zealand Dollar
Overnight the ‘Kiwi’ dropped to within touching distance of a month low against the US Dollar as the result of some concerning news regarding New Zealand’s major export, dairy products. With China banning imports of milk powder from one of New Zealand’s biggest producers the nation’s Dollar declined against the majority of its most traded peers.
NZD/GBP is trading in the region of 0.5094, NZD/EUR is trading in the region of 0.5846 and NZD/USD is trading in the region of 0.7802
Although the Canadian Dollar was able to rally after the US published disappointing jobs data, the commodity driven currency closed trade slightly lower. With domestic news thin on the ground ‘Loonie’ movement is likely to be driven by US developments in the hours ahead.
CAD/GBP is trading in the region of 0.6298, CAD/EUR is trading in the region of 0.7249 and CAD/USD is trading in the region of 0.9633
These exchange rates were correct as of 9:10 am