Pound Sterling
Sterling sharply declined against the majority of its currency rivals yesterday, notably hitting a 15-month low against the Euro and a 31-month low against the US Dollar. The Pound’s declines were triggered by the release of minutes from the latest Bank of England policy meeting, which revealed a split among the Monetary Policy Committee regarding the BoE’s approach to stimulus. Of particular interest to the Pound today are UK public sector net borrowing and public finances figures. Developments in the Eurozone could also cause movement.
The Pound is presently trading against the Euro in the region of 1.1501 and is trading against the US Dollar in the region of 1.5186
US Dollar
Yesterday the ‘Greenback’ hit a 2 ½ year high against its British rival following the release of dovish minutes from the Bank of England. The US Dollar’s gains were also aided by the Federal Reserve indicating that it may begin slowing the rate of quantitative easing. The most volatile pieces of US news on the cards for today are the nation’s consumer price index and initial jobless claims data.
The US Dollar is presently trading against the Pound in the region of 0.6585 and is trading against the Euro in the region of 0.7574
Euro
The Euro fell against the US Dollar for a second day following the release of a German report which revealed that manufacturing in the nation expanded by less than forecast. The common currency also declined against the Yen as the odds of the European Central Bank keeping borrowing costs lower for longer to aid the Eurozone’s economic recovery increased. With influential US and UK data still to come the Euro is likely to experience further fluctuations in the hours ahead.
The Euro is presently trading against the Pound in the region of 0.8695 and is trading against the US Dollar in the region of 1.3213
Australian Dollar
As Asian stocks steeply declined so too did investor appetite for higher-risk assets like the Australian Dollar. The ‘Aussie’ fell against rivals including the US Dollar and Japanese Yen and was held lower by news that China is pushing local authorities to curtail real estate speculation. With no more significant Australian economic data scheduled for release this week ‘Aussie’ movement is most likely to be caused by global economic developments.
The Australian Dollar is presently trading against the Pound in the region of 0.6732, is trading against the Euro in the region of 0.7739 and is trading against the US Dollar in the region of 1.0230
New Zealand Dollar
The New Zealand Dollar continued to decline as the RBNZ’s warning (that it was prepared to step in to curb ‘Kiwi’ gains) sunk in with investors. Developments in China and falling Asian stocks also took their toll on the currency. Investors will now be looking ahead to tomorrow’s potentially volatile credit card spending figures for New Zealand.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5501, is trading against the Euro in the region of 0.6283 and is trading against the US Dollar in the region of 0.8330
Canadian Dollar
Ongoing concerns regarding the slowing rate of Canadian growth, combined will a dip in the prices of crude oil, caused the commodity-driven ‘Loonie’ to fall against several of its most traded peers. The Canadian Dollar lingered in the region of a seven-month low against its American counterpart before dropping lower following the release of hawkish FOMC minutes.
The Canadian Dollar is presently trading against the Pound in the region of 0.6472, is trading against the Euro in the region of 0.7434 and is trading against the US Dollar in the region of 0.9815
These exchange rates were correct as of 9:18 am
