Ahead of the publication of UK inflation data the Pound modestly strengthened against the US Dollar, but was little changed against the Euro. Industry experts have forecast that consumer and producer prices rose at a faster pace in June. However, while today’s UK news could trigger Sterling fluctuations, investors will also be looking ahead to tomorrow’s Bank of England policy meeting minutes.
GBP/EUR is trading in the region of 1.1546 and GBP/USD is trading in the region of 1.5108
With a smaller-than-expected advance in US retail sales dampening hopes that the Federal Reserve will begin tapering stimulus and Fed Chairman Ben Bernanke due to speak tomorrow, the US Dollar lost ground against the majority of its currency counterparts. The safe-haven ‘Greenback’ slipped against the Euro, Pound and Australian Dollar overnight and could experience additional movement following the release of the US consumer price index at 13:30 GMT.
USD/GBP is trading in the region of 0.6613 and USD/EUR is trading in the region of 0.7642
The expectation that today’s report will show that investor confidence in the Eurozone’s largest economy climbed in July supported the Euro against rivals including the US Dollar and Yen this morning. If predictions that the German sentiment survey rose to 40 this month are disappointed the Euro could decline.
EUR/GBP is trading in the region of 0.8661 and EUR/USD is trading in the region of 1.3087
As the publication of minutes from the latest Reserve Bank of Australia meeting reduced the odds of the central bank issuing a rate cut, the ‘Aussie’ surged against its counterparts. The Down-Under Dollar rallied to 91.87 US cents during the local session. Further fluctuations could be inspired by the Australian Westpac Leading Index, due out at 01:30 GMT.
AUD/GBP is trading in the region of 0.6076, AUD/EUR is trading in the region of 0.7016 and AUD/USD is trading in the region of 0.9185
New Zealand Dollar
During Australasian trading the New Zealand Dollar climbed for a second day as the likelihood of the Federal Reserve tapering stimulus declined. However, ‘Kiwi’ gains were limited by data showing that local consumer price increases slowed more than expected in the second quarter of the year.
NZD/GBP is trading in the region of 0.5184, NZD/EUR is trading in the region of 0.5979 and NZD/USD is trading in the region of 0.7840
Worse-than-anticipated US retail sales figures and declining crude oil prices saw the Canadian Dollar weaken during the local session. The commodity-driven currency declined against the Pound and ‘Greenback’ and could be affected later today by Canadian manufacturing shipments data.
CAD/GBP is trading in the region of 0.6349, CAD/EUR is trading in the region of 0.7331 and CAD/USD is trading in the region of 0.9593
These exchange rates were correct as of 9:10 am