In the wake of the publication of minutes from the Federal Reserve’s latest policy meeting the Pound weakened against its US rival. It also lost ground against the Euro as the European session got underway and the common currency was boosted by some impressive economic news for Germany.
GBP/EUR is trading in the region of 1.1698 and GBP/USD is trading in the region of 1.5594
After the minutes from the Federal Open Market Committee revealed that policy makers were broadly united in the plan to taper bond buying before the end of the year the US Dollar was boosted and advanced on the majority of its most traded rivals. The ‘Greenback’ was further supported by the expectation that today’s US housing and PMI data will show improvement.
USD/GBP is trading in the region of 0.6412 and USD/EUR is trading in the region of 0.7502
In the hours ahead the Euro can be expected to gain on its peers in response to better-than-expected domestic news. Although French PMI failed to hit estimates, the German services and manufacturing sectors both expanded by more than anticipated. However, if today’s US data is also positive gains against the ‘Greenback’ could be limited.
EUR/GBP is trading in the region of 0.8548 and EUR/USD is trading in the region of 1.3327
Although the ‘Aussie’ weakened against its US counterpart in the aftermath of the FOMC minutes release, the South Pacific asset was able to rebound after a better-than-expected Chinese manufacturing report. With China’s manufacturing sector expanding for the first time in four months Australia’s trade prospects were boosted and the ‘Aussie’ advanced.
AUD/GBP is trading in the region of 0.5767, AUD/EUR is trading in the region of 0.6746 and AUD/USD is trading in the region of 0.8990
New Zealand Dollar
After declining against its rivals in reaction to US developments the New Zealand Dollar was little affected by China’s positive manufacturing report and fell to a two-week low against its Australian peer. An absence of local news means that ‘Kiwi’ movement will continue to be dictated by global developments before the weekend.
NZD/GBP is trading in the region of 0.5022, NZD/EUR is trading in the region of 0.5878 and NZD/USD is trading in the region of 0.7839
With the FOMC giving tapering their backing the Canadian Dollar dropped to a six-week low against its US rival. The commodity-driven currency was also trading lower against several of its other main peers prior to the release of domestic retail sales figures. Economists have forecast that Canadian retail sales dipped by 0.4 per cent in June month-on-month.
CAD/GBP is trading in the region of 0.6117, CAD/EUR is trading in the region of 0.7155 and CAD/USD is trading in the region of 0.9540
These exchange rates were correct as of 8:50 am