Ahead of the release of a UK manufacturing report, which economists expect to show improvement, the Pound was little changed against the US Dollar and experienced modest fluctuations against the Euro. The Pound slipped against the ‘Greenback’ overnight as investors turned to the safe-haven asset in the wake of less-than-impressive Chinese news.
GBP/EUR is trading in the region of 1.1615 and GBP/USD is trading in the region of 1.5384
With China’s manufacturing PMI coming in at 47.7 rather than the 48.2 predicted, concerns of a slowdown in the world’s second largest economy inspired a bout of risk-aversion. The safe-haven US Dollar consequently advanced on several of its most traded currency rivals prior to the publication of today’s US new home sales report and preliminary Markit PMI.
USD/GBP is trading in the region of 0.6503 and USD/EUR is trading in the region of 0.7546
The Euro strengthened against its peers as the European session got underway and services/manufacturing PMI for Germany, France and the Eurozone exceeded expectations. Manufacturing unexpectedly returned to growth in Germany and the Eurozone while services pushed closer to the 50 mark separating growth from contraction.
EUR/GBP is trading in the region of 0.8614 and EUR/USD is trading in the region of 1.3252
As Chinese manufacturing was shown to have contracted by more than anticipated the Australian Dollar shed recent gains and slumped against the US Dollar. The ‘Aussie’ was also affected by domestic data showing that Australia’s underlying inflation accelerated in the last quarter. Expectations that the Reserve Bank of Australia will issue a rate cut next month dipped as a result.
AUD/GBP is trading in the region of 0.6026, AUD/EUR is trading in the region of 0.7009 and AUD/USD is trading in the region of 0.9254
New Zealand Dollar
Although the ‘Kiwi’ was able to brush a month high against the US Dollar after data showed that New Zealand’s trade surplus expanded in June, the commodity-driven currency later declined as China’s manufacturing sector contracted by more than anticipated, denting New Zealand’s trade prospects. Significant ‘Kiwi’ fluctuations can be expected to occur as a result of the Reserve Bank of New Zealand’s rate decision.
NZD/GBP is trading in the region of 0.5196, NZD/EUR is trading in the region of 0.6028 and NZD/USD is trading in the region of 0.7973
Better than anticipated Canadian retail sales figures allowed the Canadian Dollar to hit a four-week high against its US counterpart during the local session. Although the ‘Loonie’ was adversely affected by news from China, an absence of pertinent Canadian news is likely to limit movement in the currency in the hours ahead.
CAD/GBP is trading in the region of 0.6315, CAD/EUR is trading in the region of 0.7330 and CAD/USD is trading in the region of 0.9707
These exchange rates were correct as of 9:10 am