The Pound marched towards a third consecutive 5-day gain

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Pound Sterling

With UK house prices reaching a record high in May, closing a week of positive UK data, the Pound was able to march towards a third consecutive 5-day gain against its US rival. Yesterday Sterling was able to achieve a four-month high against the ‘Greenback’, although a downward correction has since seen the British currency trading in the region of 1.5669.

GBP/EUR is trading in the region of 1.1744 and GBP/USD is trading in the region of 1.5664

US Dollar

Mounting speculation that the Federal Reserve may not taper quantitative easing as early as hoped saw the US Dollar broadly decline during local trade. Although the safe-haven currency initially strengthened following the publication of better-than-anticipated US retail sales and jobless claims figures, it went on to pair that advance as a result of an article in the Wall Street Journal which implied that the Fed would not be considering reining in QE when it meets next week.

USD/GBP is trading in the region of 0.6375 and USD/EUR is trading in the region of 0.7498

Euro

While the Euro eased away from recent highs following the release of positive US retail sales and jobless claims data the common currency continues to trade in the region of 1.33+ against the US Dollar. The Euro weakened slightly against the Pound ahead of the publication of CPI and employment figures for the Eurozone.

EUR/GBP is trading in the region of 0.8514 and EUR/USD is trading in the region of 1.3332

Australian Dollar

With investors speculating that the ‘Aussie’s recent decline has occurred too rapidly the South Pacific currency strengthened against its peers overnight, and is now in line to record its first five-day gain against the US Dollar for six weeks. News from the US could inspire additional Australian Dollar movement as we head into the weekend.

AUD/GBP is trading in the region of 0.6128, AUD/EUR is trading in the region of 0.7198 and AUD/USD is trading in the region of 0.9598

New Zealand Dollar

Although the New Zealand Dollar declined following the Reserve Bank’s rate decision, the ‘Kiwi’ has still advanced against its US counterpart by 2.4 per cent this week – it’s most significant 5-day gain against the ‘Greenback’ for more than a year. The currency weakened slightly during local trade despite New Zealand’s Performance of Manufacturing Index jumping from a revised 55.2 in April to 59.2 in May and a rebound in US stocks increasing investor appetite for higher-risk assets.

NZD/GBP is trading in the region of 0.5143, NZD/EUR is trading in the region of 0.6040 and NZD/USD is trading in the region of 0.8062

Canadian Dollar

The ‘Loonie’ was able to achieve a four-week high against the US Dollar yesterday as better than forecast North American data (including US retail sales and Canadian new house prices) upped the odds of the Bank of Canada raising rates in the near future. The Canadian Dollar also benefited from crude oil, a major Canadian commodity, rising.

CAD/GBP is trading in the region of 0.6279, CAD/EUR is trading in the region of 0.7377 and CAD/USD is trading in the region of 0.9834

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.