Euro to experience significant movement

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Pound Sterling

According to an index compiled by GfK NOP ltd, consumer confidence in the UK held steady this month, despite the pressures of stubborn inflation and the threat of a triple-dip recession. After the report was released the Pound was little changed, but Sterling could post declines against the Euro if data for the Eurozone exceeds expectations.

The Pound is presently trading against the Euro in the region of 1.1556 and is trading against the US Dollar in the region of 1.5184

US Dollar

The US Dollar lost ground against the Yen yesterday as investors considered the implications of the possible appointment of a Bank of Japan governor who supports aggressive stimulus. However, the ‘Greenback’ was able to gain on the Canadian, Australian and New Zealand Dollars as developments; both at home and abroad, negatively impacted the currencies. A string of influential data for the Eurozone is likely to cause volatility in the market place today. US data, including initial jobless claims statistics, are also of interest.

The US Dollar is presently trading against the Pound in the region of 0.6586 and is trading against the Euro in the region of 0.7610

Euro

The Euro is likely to experience significant movement over the course of the day as a stream of volatile data for the Eurozone is released. Already this morning figures have shown that German unemployment fell unexpectedly this month – a further sign that the largest economy in the 17-nation currency bloc is returning to growth. Immediately following the news the Euro was little changed against the US Dollar but if Eurozone and German CPI figures also impress the common currency could gain on its rivals.

The Euro is presently trading against the Pound in the region of 0.8653 and is trading against the US Dollar in the region of 1.3142

Australian Dollar

As investors lowered the odds of the Reserve Bank of Australia slashing its key interest rate the ‘Aussie’ experienced a rebound, recouping losses sustained after figures revealed an unexpected decline in capital spending. Later today the Australian AiG Performance of Manufacturing Index could trigger additional ‘Aussie’ movement.

The Australian Dollar is presently trading against the Pound in the region of 0.6767, is trading against the Euro in the region of 0.7800 and is trading against the US Dollar in the region of 1.0277

New Zealand Dollar

Rallying global stocks and improving business confidence/building approvals in New Zealand allowed the ‘Kiwi’ to climb against several of its most traded rivals. The New Zealand Dollar was able to regain ground lost yesterday due to an unexpected widening in the nation’s trade deficit, advancing by 0.5 per cent against the US Dollar and 0.7 per cent against the Yen.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5480, is trading against the Euro in the region of 0.6298 and is trading against the US Dollar in the region of 0.8320

Canadian Dollar

The Canadian Dollar continued to fall yesterday as the threat of an impending series of spending cuts in the US and sliding oil prices took a toll. Several pieces of Canadian data, including current account figures and the nation’s industrial price index, could cause ‘Loonie’ movement this afternoon. Additional fluctuations may also be triggered as a result of news from Europe and the US.

The Canadian Dollar is presently trading against the Pound in the region of 0.6446, is trading against the Euro in the region of 0.7447 and is trading against the US Dollar in the region of 0.9784

These exchange rates were correct as of 9:17 am

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.