The Pound edged away from a three-year low

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Pound Sterling

The Pound edged away from the three-year low recorded against the ‘Greenback’ yesterday but was little changed against the Euro as investors look ahead to next week’s UK inflation data. Although no influential UK news is scheduled for release today, developments in the US are likely to inspire significant market movement.

GBP/EUR is trading in the region of 1.1630 and GBP/USD is trading in the region of 1.4896

US Dollar

With Federal Reserve Chairman Ben Bernanke’s announcement finally approaching, the US Dollar is headed for a volatile trading session. Before Bernanke speaks ‘Greenback’ fluctuations could be inspired by the release of minutes from the Federal Open Market Committee’s latest policy meeting – due out at 19:00 GMT.

USD/GBP is trading in the region of 0.6714 and USD/EUR is trading in the region of 0.7809

Euro

News that the International Monetary Fund had lowered its growth forecast for the Eurozone, coupled with comments issued by a European Central Bank official concerning the likelihood of rates remaining low for at least a year, saw the Euro dip against the US Dollar. With the Pound broadly softening yesterday in response to less-than-impressive UK news, the common currency was little changed against its British counterpart as the European session began. Today’s German CPI data met expectations.

EUR/GBP is trading in the region of 0.8597 and EUR/USD is trading in the region of 1.2807

Australian Dollar

While trade concerns in China initially caused the Australian Dollar to fall, speculation that the South Pacific currency may have declined too rapidly helped it to recoup some losses and hit a five-day high against the US Dollar. News from the US is likely to be the catalyst for ‘Aussie’ movement in the hours ahead, but fluctuations could be limited ahead of tomorrow’s Australian employment figures.

AUD/GBP is trading in the region of 0.6177, AUD/EUR is trading in the region of 0.7190 and AUD/USD is trading in the region of 0.9207

New Zealand Dollar

After New Zealand’s Finance Minister asserted that he was confident that rates would rise the ‘Kiwi’ advanced modestly on its peers. Today’s performance of manufacturing index for New Zealand, due for publication at 23:30 GMT, could bolster the New Zealand Dollar further if it beats expectations.

NZD/GBP is trading in the region of 0.5280, NZD/EUR is trading in the region of 0.6126 and NZD/USD is trading in the region of 0.7865

Canadian Dollar

The ‘Loonie’ climbed against its US counterpart on the expectation that corporate profits will exceed estimates. Crude oil approaching a 14-month high also supported the commodity-driven Canadian Dollar during the local session.

CAD/GBP is trading in the region of 0.6389, CAD/EUR is trading in the region of 0.7434 and CAD/USD is trading in the region of 0.9521

These exchange rates were correct as of 9:10 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.