For the first time in four-weeks the Pound is headed towards a five-day advance on the US Dollar. However, Sterling’s modest rebound could be derailed if today’s UK construction report disappoints. The British currency was holding steady against the Euro as the European session opened, but if the Eurozone’s industrial production figures decline as expected the GBP/EUR pairing could gain.
GBP/EUR is trading in the region of 1.1598 and GBP/USD is trading in the region of 1.5133
With three regional Federal Reserve Bank Presidents scheduled to speak, and perhaps shed more light on the tapering issue, the US Dollar is in line to post a weekly decline against several of its main currency rivals. The ‘Greenback’ could also be affected by today’s US producer price report and University of Michigan confidence gauge.
USD/GBP is trading in the region of 0.6608 and USD/EUR is trading in the region of 0.7656
The Euro eased away from yesterday’s three-week high against the US Dollar as the European session opened and investors looked ahead to today’s industrial production report for the Eurozone. If production falls by 0.3 per cent month-on-month, as forecast, the common currency could soften further.
EUR/GBP is trading in the region of 0.8624 and EUR/USD is trading in the region of 1.3052
As the odds of the Reserve Bank of Australia slashing rates increase, and with domestic data showing that Australian home loans climbed by less than expected, the Australian Dollar declined against several of its counterparts overnight. News from the US could inspire further movement as we head into the weekend.
AUD/GBP is trading in the region of 0.6050, AUD/EUR is trading in the region of 0.7012 and AUD/USD is trading in the region of 0.9148
New Zealand Dollar
The New Zealand Dollar modestly extended gains against the US Dollar during South Pacific trade, pushing its five-day gain to 2 per cent. While news from the US is expected to drive the market in the days ahead, investors will also be looking ahead to next week’s influential data for New Zealand, including Tuesday’s inflation figures.
NZD/GBP is trading in the region of 0.5188, NZD/EUR is trading in the region of 0.6012 and NZD/USD is trading in the region of 0.7859
During the North American session the Canadian Dollar advanced on its US peer, ending trade higher despite a smaller-than-forecast gain in Canada’s new housing price index. With the weekend looming additional ‘Loonie’ movement is most likely to result from US news.
CAD/GBP is trading in the region of 0.6378, CAD/EUR is trading in the region of 0.7397 and CAD/USD is trading in the region of 0.9649
These exchange rates were correct as of 9:25 am