The Pound broadly strengthened

foreign_exchange_rates

Pound Sterling

As last week came to a close the Pound broadly strengthened after Bank of England Governor Mervyn King asserted that policy makers aren’t attempting to drive the currency lower. Sterling rose notably against the US Dollar and Euro, posting a weekly advance of 1.3 per cent against the former. The Pound’s advance on the Euro continued this morning as the Cypriot crisis triggered widespread declines in the common currency. Sterling also benefited from a report showing that UK house prices rose by 1.7 per cent in March.

The Pound is presently trading against the Euro in the region of 1.1675 and is trading against the US Dollar in the region of 1.5129

US Dollar

On Friday the USD/EUR exchange rate fell to a week low as investors turned to riskier assets in the face of encouraging economic indicators for the US. The lowering odds of the Federal Reserve exiting its quantitative easing program early saw the ‘Greenback’ post losses against several of its most traded peers. However, a new fiscal crisis in Europe has since triggered a bout of risk aversion which caused the US Dollar to rebound. Any negative news relating to the bank deposit levy in Cyprus could see the ‘Greenback’ record additional gains.

The US Dollar is presently trading against the Pound in the region of 0.6621 and is trading against the Euro in the region of 0.7730

Euro

As an unprecedented levy on Cypriot bank deposits triggered extensive market movement, the Euro plummeted against the safe-haven US Dollar, falling by the most for 14 months. The common currency posted declines against the majority of its other main counterparts as concern that this development could damage the Eurozone’s fragile economic recovery had investors flocking to less risky assets. With the vote for the deposit levy taking place this afternoon the Euro is likely to experience further movement.

The Euro is presently trading against the Pound in the region of 0.8565 and is trading against the US Dollar in the region of 1.2960

Australian Dollar

With risk-aversion dominating the market as a result of developments in Cyprus the Australian Dollar declined against several of its most traded peers, brushing a week low against the Yen and shedding 0.5 per cent against the US Dollar. However, tomorrow’s release of minutes from the RBA’s latest policy meeting tempered ‘Aussie’ declines.

The Australian Dollar is presently trading against the Pound in the region of 0.6854, is trading against the Euro in the region of 0.7998 and is trading against the US Dollar in the region of 1.0367

New Zealand Dollar

The New Zealand Dollar posted notable losses against safe-haven counterparts the US Dollar and Japanese Yen as the Cypriot bank deposit levy threatened to reignite the Eurozone crisis. A report revealing a drop in an index of household sentiment was also negative for the ‘Kiwi’. While tomorrow’s RBA policy meeting minutes are likely to cause movement in the New Zealand Dollar, investors will also be looking ahead to New Zealand’s current account balance data for the 4Q.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5457, is trading against the Euro in the region of 0.6382 and is trading against the US Dollar in the region of 0.8244

Canadian Dollar

On Friday the ‘Loonie’ was able to achieve a three-week high against the US Dollar following positive inflation data for the world’s largest economy. While European developments are likely to be responsible for Canadian Dollar movement today investors will also be looking ahead to Thursday’s Canadian retail sales data.

The Canadian Dollar is presently trading against the Pound in the region of 0.6471, is trading against the Euro in the region of 0.7542 and is trading against the US Dollar in the region of 0.9774

These exchange rates were correct as of 9:18 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.