Although the Pound declined against the Euro after UK retail sales fell by more than anticipated in April, the currency was able to recoup losses after separate data showed a strong rise in UK house prices. In a relatively light news day eyes are firmly focused on tomorrow, and the Bank of England’s potentially volatile rate decision. Although the BoE is expected to maintain its benchmark rate and the current level of asset purchases, the Central Bank’s policy statement will be of interest given that several pieces of UK data have come in above expectations in the last couple of weeks.
GBP/EUR is trading in the region of 1.1811 and GBP/USD is trading in the region of 1.5481
After better-than-predicted German factory order data allowed the Euro to strengthen and inspired a bout of risk-taking yesterday, the ‘Greenback’ fell against its common currency rival. The safe-haven currency went on to slip against several of its other peers as risk-appetite was supported by better-than-expected Chinese data. Additional US Dollar movement could occur today in response to German industrial production figures, but investors will also be looking ahead to tomorrow’s economic news from China and US initial jobless claims.
USD/GBP is trading in the region of 0.6459 and USD/EUR is trading in the region of 0.7633
The Euro climbed against its rivals yesterday, rebounding from lows inspired by ECB President Mario Draghi’s comments relating to an additional rate cut. The common currency’s advance was triggered by stronger-than-expected German factory order data, and further fluctuations are likely to follow the publication of German industrial production figures at 11:00 am GMT. Economists are expecting today’s data to show that industrial production in the Eurozone’s largest economy contracted. Investors will also be waiting for Thursday, and the release of minutes from the ECB’s most recent policy meeting.
EUR/GBP is trading in the region of 0.8466 and EUR/USD is trading in the region of 1.3101
The ‘Aussie’ fell against the majority of its most traded currency rivals yesterday in the wake of the Reserve Bank of Australia’s decision to implement a 0.25 basis point rate cut, but during local trade the Down-Under Dollar stabilised on the strength of better-than-expected Chinese data. Australian employment figures, due for release tomorrow, are likely to be the catalyst for additional movement in the South Pacific currency, but China’s consumer price and producer price indexes will also be of interest.
AUD/GBP is trading in the region of 0.6585, AUD/EUR is trading in the region of 0.7781 and AUD/USD is trading in the region of 1.0199
New Zealand Dollar
After Reserve Bank of New Zealand Governor Graeme Wheeler intimated that the central bank was taking steps to lower the ‘Kiwi’s exchange rate the New Zealand Dollar declined against several of its main rivals, hitting a five-week low against the US Dollar. ‘Kiwi’ volatility could be triggered by employment figures for New Zealand, out at 23:45 GMT. It has been forecast that in the first quarter of this year the nation’s unemployment rate edged down from 6.9 per cent to 6.8 per cent, and if this prediction proves accurate the New Zealand Dollar could advance.
NZD/GBP is trading in the region of 0.5426, NZD/EUR is trading in the region of 0.6410 and NZD/USD is trading in the region of 0.8400
As investors turned to higher-risk assets in response to better-than-expected data for the Eurozone’s largest economy and positive trade balance figures for China, the ‘Loonie’ was able to consolidate gains. Later today the release of Canadian housing starts figures could initiate additional Canadian Dollar movement.
CAD/GBP is trading in the region of 0.6430, EUR/CAD is trading in the region of 0.7596 and CAD/USD is trading in the region of 0.9954
These exchange rates were correct as of 9:05 am