The Pound fell to almost a 6-week low

uk_money

Pound Sterling

Although the Pound rose yesterday as the Bank of England presented a relatively positive inflation forecast, the currency fell to almost a 6-week low against the US Dollar this morning ahead of the sale of 30 years of UK government debt. The British currency was little changed against the Euro.

GBP/EUR is trading in the region of 1.1824 and GBP/USD is trading in the region of 1.5203

US Dollar

After US industrial production was shown to have declined by 0.5 per cent in April, the most significant drop for eight months, the ‘Greenback’ modestly softened, losing ground against several of its peers. The safe-haven currency is likely to experience movement this afternoon due to a stream of US economic data releases, including the nation’s consumer price index, initial jobless claims and housing starts.

USD/GBP is trading in the region of 0.6575 and USD/EUR is trading in the region of 0.7775

Euro

For the sixth consecutive day the Euro slid against the US Dollar. The common currency broadly declined yesterday as GDP figures from across the Eurozone failed to reach estimates, edging close to a six-week low against the ‘Greenback’. The common currency remains under pressure ahead of the publication of inflation data for the currency bloc. Economists are predicting that the report will show that the region’s consumer price inflation was the slowest for three years.

EUR/GBP is trading in the region of 0.8460 and EUR/USD is trading in the region of 1.2866

Australian Dollar

The ‘Aussie’ fell to an 11-month low against the US Dollar yesterday as commodities declined. Although it later experienced a modest rebound gains were reversed following the publication of Chinese data. Economists have forecast that there could be a large sell-off of the Australian Dollar if it weakens beyond a key support level of 0.9850 US Dollars. ‘Aussie’ movement is most likely to occur in response to global developments due to a lack of significant Australian economic news in the days ahead.

AUD/GBP is trading in the region of 0.6464, AUD/EUR is trading in the region of 0.7642 and AUD/USD is trading in the region of 0.9831

New Zealand Dollar

With New Zealand’s performance of manufacturing index rising to 54.5 from 53.4 in April and the nation’s government envisaging a small budget surplus in 2015 (the first for 7 years) the ‘Kiwi’ was slightly stronger against its peers after rising to a 4-year high against the ‘Aussie’ earlier in the day. The positive news largely protected the New Zealand Dollar from declines as foreign investment in China was shown to have dropped significantly.

NZD/GBP is trading in the region of 0.5400, NZD/EUR is trading in the region of 0.6402 and NZD/USD is trading in the region of 0.8198

Canadian Dollar

An unexpectedly large decline in US industrial production allowed the Canadian Dollar to gain during local trade. The commodity driven currency advanced on the majority of its most traded peers, and rebounded from a three-week low against its US counterpart. The ‘Loonie’ is likely to experience movement this afternoon following the publication of US CPI, building permits, housing starts and initial jobless claims data.

CAD/GBP is trading in the region of 0.6460, CAD/EUR is trading in the region of 0.7631 and CAD/USD is trading in the region of 0.9817

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.