The Pound rose against the US Dollar for the first time in four-days ahead of the publication of UK employment figures and the Bank of England’s Inflation report. With economists expecting unemployment claims to have dropped by 3,000 last month Sterling was also able to edge away from a three-week low against the Euro.
GBP/EUR is trading in the region of 1.1786 and GBP/USD is trading in the region of 1.5196
Ongoing concerns regarding the pace of the Yen’s declines allowed the Asian currency to retain gains recorded against its US rival during local trade. However, Disappointing news from the Eurozone saw the USD/EUR pairing climb while the increasing likelihood of the Federal Reserve ending quantitative easing lessened the appeal of higher-risk assets, boosting the safe-haven ‘Greenback’.
USD/GBP is trading in the region of 0.6582 and USD/EUR is trading in the region of 0.7732
The Euro fell against several of its main peers as reports showed that the German economy expanded by 0.1 per cent in the first quarter (0.2 per cent less than forecast) while the French economy slid into recession after posting quarterly contraction of 0.2 per cent. The disappointing results left the Euro trading in the region of 1.2904 against the US Dollar. Additional Euro movement can be expected to occur in response to Eurozone GDP, due out at 10:00 GMT.
EUR/GBP is trading in the region of 0.8483 and EUR/USD is trading in the region of 1.2892
The ‘Aussie’ dipped against the US Dollar during local trade, slipping close to an 11-month low as data showed that the premium Australian bonds offer over US debt contracted to the least for a year. The Australian wage index also rose by less-than-forecast in the first quarter of this year. Economists are expecting that the Australian Dollar will remain under pressure as the week progresses.
AUD/GBP is trading in the region of 0.6486, AUD/EUR is trading in the region of 0.7652 and AUD/USD is trading in the region of 0.9862
New Zealand Dollar
During the Australasian session the New Zealand Dollar extended declines against its US counterpart as positive American news kept the ‘Greenback’ bullish and increased the odds of US quantitative easing coming to an end. However, before the European session opened the ‘Kiwi’ was able to pare some of its decline as exporters capitalised on US Dollar strength, increasing their hedging with a cheaper entry point.
NZD/GBP is trading in the region of 0.5391, NZD/EUR is trading in the region of 0.6347 and NZD/USD is trading in the region of 0.8185
As commodity prices fell the Canadian Dollar also declined, falling to 98.33 cents against a broadly strengthening US Dollar. The ‘Loonie’ could experience movement in response to this afternoon’s Canadian existing home sales figures, but a stream of US news (including manufacturing and industrial production data) is also likely to be a cause of market volatility.
CAD/GBP is trading in the region of 0.6445, CAD/EUR is trading in the region of 0.7600 and CAD/USD is trading in the region of 0.9805
These exchange rates were correct as of 9:00 am