Ahead of the sale of UK government bonds later this week, the Pound declined to an over two-week low against its US counterpart and fell against the Euro. The week’s biggest piece of UK news, the Bank of England’s Financial Stability Report, is due for publication on Wednesday at 10:30 GMT.
GBP/EUR is trading in the region of 1.1724 and GBP/USD is trading in the region of 1.5364
With expectations that this week’s US data will show that the economic situation in the US is improving, boosting the likelihood of the Federal Reserve reining in stimulus in the months ahead, the US Dollar broadly strengthened. The ‘Greenback’ advanced on the majority of its most traded peers, notably achieving a two-week high against the Yen.
USD/GBP is trading in the region of 0.6507 and USD/EUR is trading in the region of 0.7631
The Euro could experience movement in the hours ahead after a gauge of German business expectations advanced by more-than-anticipated. However, gains could be limited as a separate index showing German business/investor perception of the current situation fell by more than forecast.
EUR/GBP is trading in the region of 0.8532 and EUR/USD is trading in the region of 1.3112
The ‘Aussie’ continues to trade in the region of a three-year low against its American rival as the appeal of South Pacific assets remains weak as a result of recent developments regarding US fiscal policy. With little pertinent Australian economic news scheduled for release this week movement in the nation’s Dollar is most likely to occur in response to US and Chinese data.
AUD/GBP is trading in the region of 0.5975, AUD/EUR is trading in the region of 0.7010 and AUD/USD is trading in the region of 0.9183
New Zealand Dollar
During local trade the New Zealand Dollar continued to weaken against its US counterpart, brushing a year-low of 77.01 before an upward correction saw it trading in the region of 77.36. Domestic data showed that credit card spending in New Zealand declined by 0.6 per cent in May after advancing by 0.4 per cent in April. Wednesday’s local trade balance figures could inspire additional ‘Kiwi’ movement.
NZD/GBP is trading in the region of 0.5038, NZD/EUR is trading in the region of 0.5926 and NZD/USD is trading in the region of 0.7733
Disappointing Canadian retail sales and CPI data saw the ‘Loonie’ experience its most significant 5-day decline against the US Dollar since September 2011. The commodity-driven currency continued to slip over the weekend as the ‘Greenback’ broadly strengthened on US economic recovery hopes. The most important piece of Canadian data, domestic GDP figures, is due for release on Friday at 13:30 GMT.
CAD/GBP is trading in the region of 0.6196, CAD/EUR is trading in the region of 0.7262 and CAD/USD is trading in the region of 0.9517
These exchange rates were correct as of 9:15 am