The Euro was able to strengthen

money_euros

Pound Sterling

After declining against the Euro yesterday following the publication of disappointing UK retail sales figures the Pound climbed to an almost three-month high against the US Dollar this morning before the Bank of England’s policy meeting. The British currency is likely to experience significant movement in the hours ahead in response to UK industrial and manufacturing production figures for March and the BoE’s rate decision. Although the central bank is largely expected to maintain the current level of asset purchases and leave rates unchanged, the tone of the accompanying statements could trigger Sterling fluctuations.

GBP/EUR is trading in the region of 1.1824 and GBP/USD is trading in the region of 1.5544

US Dollar

The US Dollar posted additional declines against the Euro yesterday as German industrial production figures defied economists’ expectations for a year-on-year drop of 3.8 per cent and a month-on-month decline of 0.1 per cent. The better-than-forecast result led to a bout of risk-taking in the marketplace, causing the safe-haven US Dollar to edge lower against its peers. If today’s US initial jobless claims data surprises it could cause ‘Greenback’ movement.

USD/GBP is trading in the region of 0.6437 and USD/EUR is trading in the region of 0.7605

Euro

The Euro was able to strengthen against its biggest rivals yesterday as a second piece of relatively positive German data boosted the outlook of the Eurozone’s largest economy. The expectation that tomorrow’s export report for Germany will show a month-on-month gain of 0.5 per cent supported the Euro ahead of the publication of the ECB’s latest policy report.

EUR/GBP is trading in the region of 0.8457 and EUR/USD is trading in the region of 1.3145

Australian Dollar

The ‘Aussie’ was able to recoup losses inspired by the RBA rate cut on the strength of positive Chinese trade balance figures, and after Australian employment surged by significantly more than forecast the currency continued to climb. The Australian Dollar hit 1.0235 US Dollars and posted gains against the majority of its other main currency rivals after data showed that the Australian economy added 50,100 jobs in April.

AUD/GBP is trading in the region of 0.6584, AUD/EUR is trading in the region of 0.7782 and AUD/USD is trading in the region of 1.0233

New Zealand Dollar

Reserve Bank of New Zealand Governor Graeme Wheeler’s comments regarding currency intervention resulted in the ‘Kiwi’ falling to a five-week low against the US Dollar and losing ground against most of its commonly traded counterparts. But the New Zealand Dollar saw additional movement following the publication of the nation’s unexpectedly strong employment figures. The gain of 38,000 jobs allowed the New Zealand Dollar to rebound and climb to 84.55 US cents during local trade.

NZD/GBP is trading in the region of 0.5444, NZD/EUR is trading in the region of 0.6406 and NZD/USD is trading in the region of 0.8400

Canadian Dollar

The ‘Loonie’ strengthened against the US Dollar at the beginning of the week as a result of global economic developments, but after Canadian Housing Starts came in marginally below forecast the Canadian Dollar edged down from its 12-week high. The commodity-driven currency was then able to recoup losses following positive news from Australia and New Zealand. Today Canada’s New Housing Price Index could be responsible for ‘Loonie’ fluctuations, but US initial jobless claims figures will also be of interest.

CAD/GBP is trading in the region of 0.6421, CAD/EUR is trading in the region of 0.7592 and CAD/USD is trading in the region of 0.9979

These exchange rates were correct as of 9:00 am GMT

Richard Martin
This post was written by
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.