The Pound held on to its two-day decline

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Pound Sterling

The Pound held on to its two-day decline against the Euro this morning prior to the release of the Bank of England’s quarterly inflation report. The British central bank is broadly expected to slash its growth forecasts for the UK and if this prediction proves accurate Sterling could post additional losses against its main peers in the hours ahead.

The Pound is presently trading against the Euro in the region of 1.1634 and is trading against the US Dollar in the region of 1.5648

US Dollar

The market experienced extreme movement yesterday following the meeting of the G-7 and the comments the group issued regarding exchange rates. Although the ‘Greenback’ posted declines against the Yen and Euro it was able to gain on the British Pound and Canadian Dollar, although an upward correction in the latter paring occurred before the close of trade. Today investors will be focusing on volatile US advance retail sales figures and business inventory data.

The US Dollar is presently trading against the Pound in the region of 0.6388 and is trading against the Euro in the region of 0.7432

Euro

The Euro experienced a significant rebound yesterday, making notable advances against the majority of its counterparts after the G-7 issued conflicting statements about manipulating exchange rates to boost growth. The common currency also benefited from Luxembourg Prime Minister Jean-Claude Junker asserting that the Euro had no ‘optimum level’. Of interest today are Eurozone industrial production figures and an Italian bond sale.

The Euro is presently trading against the Pound in the region of 0.8594 and is trading against the US Dollar in the region of 1.3458

Australian Dollar

As a gauge of Australian consumer confidence jumped to a two-year high the ‘Aussie’ was able to gain on its main currency rivals. This better-than-expected result has reduced the odds of the Reserve Bank of Australia cutting interest rates when it meets in March, but this situation could be reversed if tomorrow’s consumer inflation expectation figures disappoint.

The Australian Dollar is presently trading against the Pound in the region of 0.6605, is trading against the Euro in the region of 0.7683 and is trading against the US Dollar in the region of 1.0355

New Zealand Dollar

The conflicting viewpoints offered by G-7 regarding exchange rates allowed the ‘Kiwi’ to climb by 0.6 per cent on the US Dollar yesterday, achieving a four-day high. The New Zealand Dollar was also supported by a report which showed that home prices in the South Pacific nation rose by 7.2 per cent in January.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5363, is trading against the Euro in the region of 0.6256 and is trading against the US Dollar in the region of 0.8414

Canadian Dollar

After hitting its weakest level for four weeks against its American counterpart the Canadian Dollar experienced a rebound yesterday due to the commodity-driven nation’s crude oil trades. The ‘Loonie’ was able to hold on to its gains despite Bank of Canada governor Mark Carney restating the reduced urgency of raising interest rates. With Canadian economic news thin on the ground today movement in the Canadian Dollar is likely to be the result of global economic developments.

The Canadian Dollar is presently trading against the Pound in the region of 0.6377, is trading against the Euro in the region of 0.7416 and is trading against the US Dollar in the region of 0.9975

These exchange rates were correct as of 9:05 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.