The Pound modestly strengthened

uk_money

Pound Sterling

Prior to the release of first quarter GDP data for the UK the Pound modestly strengthened against several of its most traded peers, briefly climbing to 85.13 pence against the Euro. Economists forecast that the UK economy grew by 0.1 per cent in the first three months of this year, allowing the nation to narrowly avoid entering a triple dip recession. A surprising result could inspire significant Sterling volatility.

The Pound is presently trading against the Euro in the region of 1.1726 and is trading against the US Dollar in the region of 1.5298

US Dollar

After US durable goods orders were shown to have declined by 2.7 per cent more than expected in March the odds of central banks maintaining stimulus until the global economy picks up increased. Consequently, safe-haven assets like the US Dollar and Japanese Yen were passed over in favour of their higher-yielding rivals, causing the ‘Greenback’ to decline against its riskier counterparts. Today’s initial jobless claims figures will be the main cause of US Dollar movement.

The US Dollar is presently trading against the Pound in the region of 0.6533 and is trading against the Euro in the region of 0.7666

Euro

The Euro dropped against the majority of its peers yesterday following the publication of German economic surveys. Both German business climate and expectations surveys declined by more-than-expected, dimming the prospects of the Eurozone’s largest economy. But as higher-risk assets were boosted by speculation that central banks will continue with their fiscal easing measures for the foreseeable future, the Euro recovered some of its losses. However, the German macroeconomic forecast (due for publication at 11:00 am) could trigger additional fluctuations.

The Euro is presently trading against the Pound in the region of 0.8528 and is trading against the US Dollar in the region of 1.3045

Australian Dollar

As the price of gold continues to climb in response to weakness in the US Dollar, the commodity-driven ‘Aussie’ has gained, climbing to 1.0302 against the ‘Greenback’. Another piece of less-than-impressive US data has fuelled speculation that international central banks will maintain present stimulus measures, and higher-risk currencies like the Australian Dollar have gained as a result.

The Australian Dollar is presently trading against the Pound in the region of 0.6734, is trading against the Euro in the region of 0.7897 and is trading against the US Dollar in the region of 1.0307

New Zealand Dollar

During local trade the New Zealand Dollar extended gains recorded against the US Dollar yesterday. The currency continues to benefit from the RBNZ decision to hold rates and Governor Graeme Wheeler’s positive comments regarding New Zealand’s economic outlook, while poor US data caused the ‘Greenback’ to dip. The ‘Kiwi’ is likely to experience movement tonight in response to New Zealand’s trade balance figures, scheduled for release at 23:45 GMT.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5575, is trading against the Euro in the region of 0.6510 and is trading against the US Dollar in the region of 0.8528

Canadian Dollar

The ‘Loonie’ dropped against several of its rivals following the release of a concerning durable goods orders report for the US, Canada’s main trading partner. Orders for durable goods slumped by 5.7 per cent in March rather than the 3 per cent expected. The Canadian Dollar was trading close to a six-week low against its US counterpart during the local session and could fall further if US initial jobless claims figures also disappoint. Canadian average weekly earnings data will also be of interest.

The Canadian Dollar is presently trading against the Pound in the region of 0.6397, is trading against the Euro in the region of 0.7494 and is trading against the US Dollar in the region of 0.9774

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.