The Pound dipped against its US counterpart

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Pound Sterling

Ahead of the publication of CPI data for the UK the Pound dipped against its US counterpart. The expectation that today’s report will show that consumer price inflation accelerated last month caused Sterling to edge down from close to a four month high against the ‘Greenback’. A surprising result could trigger Pound fluctuations.

GBP/EUR is trading in the region of 1.1748 and GBP/USD is trading in the region of 1.5669

US Dollar

With the Federal Reserve’s highly anticipated two-day policy meeting due to begin in just a few hours the US Dollar gained on the Yen for a second day. The ‘Greenback’s advance on its Asian peer was also aided by a Bank of Japan report showing that the unprecedented level of fiscal easing sanctioned by the central bank will result in a record level current-account balance. While the Fed’s meeting is the week’s big news this afternoon’s US CPI data is also likely to inspire US Dollar volatility.

USD/GBP is trading in the region of 0.6382 and USD/EUR is trading in the region of 0.7492

Euro

The Euro dipped against the US Dollar this morning as ECB chief Mario Draghi hinted once again at the possibility of the central bank deploying non-standard monetary policy measures. The common currency could experience additional fluctuations as the European session progresses and Eurozone/German ZEW economic sentiment surveys are published.

EUR/GBP is trading in the region of 0.8518 and EUR/USD is trading in the region of 1.3349

Australian Dollar

Following the publication of minutes from the Reserve Bank of Australia’s latest policy meeting the ‘Aussie’ declined against all of its most traded rivals. The minutes revealed that the central bank believes there is room to ease borrowing costs further and that the Australian Dollar’s exchange rate could continue to decline. The ‘Aussie’ shed 0.6 per cent against the US Dollar during local trade.

AUD/GBP is trading in the region of 0.6041, AUD/EUR is trading in the region of 0.7131 and AUD/USD is trading in the region of 0.9479

New Zealand Dollar

With investors firmly focused on the Federal Reserve’s two-day policy meeting, the New Zealand Dollar weakened modestly during local trade. If the US central bank drops any additional hints regarding when stimulus could be reined in the ‘Kiwi’ could continue to fall.

NZD/GBP is trading in the region of 0.5090, NZD/EUR is trading in the region of 0.5977 and NZD/USD is trading in the region of 0.7966

Canadian Dollar

Although the Canadian Dollar initially gained following the publication of a strong housing report, the commodity driven currency later softened as investors speculate on the likelihood of the Federal Reserve opting to taper stimulus in the near future. With domestic data thin on the ground today additional ‘Loonie’ fluctuations are likely to result from news from the US.

CAD/GBP is trading in the region of 0.6263, CAD/EUR is trading in the region of 0.7350 and CAD/USD is trading in the region of 0.9813

These exchange rates were correct as of 9:15 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.