After trading close to an 11-week low against the US Dollar yesterday, the Pound posted additional declines against rivals like the Euro as a Confederation of British Industry report showed a surprising 0.4 per cent decline in UK retail sales in May. However, the currency was able to stage a rebound against the Dollar as the European session opened and a Nationwide report revealed an impressive increase in UK home prices. Additional Sterling movement is likely to occur tomorrow as a result of several pieces of UK data, notably consumer confidence figures.
GBP/EUR is trading in the region of 1.1696 and GBP/USD is trading in the region of 1.5164
After gaining against its peers as a result of positive economic indicators for the US the ‘Greenback’ shed gains during local trade as investors sold off the currency. The US Dollar slipped against the Euro, Pound and Yen but could recoup losses if today’s domestic data (which includes first quarter GDP) meets or exceeds estimates. If it seems that the US economy is indeed gathering momentum the likelihood of the Fed bringing an end to easing will increase, boosting the Dollar.
USD/GBP is trading in the region of 0.6594 and USD/EUR is trading in the region of 0.7717
The Euro posted a modest gain against the US Dollar yesterday, despite German joblessness increasing by 21K rather than the estimated 5K. Speculation that the European Central Bank may have to step up quantitative easing in order to support the Eurozone pushed the Euro to 1.2977 during the local session. The common currency is likely to fluctuate today in response to the publication of Eurozone Consumer/Economic/Services and Industrial Confidence data.
EUR/GBP is trading in the region of 0.8551 and EUR/USD is trading in the region of 1.2966
The ‘Aussie’ was able to break away from a recent run of declines and record a modest advance against the US Dollar during local trade as Australian building approvals increased by more than expected. The next piece of influential Australian data to watch out for is tomorrow’s Private Sector Credit report, due out at 02:30 GMT.
AUD/GBP is trading in the region of 0.6379, AUD/EUR is trading in the region of 0.7461 and AUD/USD is trading in the region of 0.9672
New Zealand Dollar
Despite comments issued by Graeme Wheeler (Governor of the RBNZ) regarding the ‘overvalued’ New Zealand Dollar, the ‘Kiwi’ advanced on the US Dollar as domestic building permit data exceeded expectations. New Zealand’s Business Confidence and Activity Outlook figures, which will be published during the local session, could be responsible for more ‘Kiwi’ movement before the weekend.
NZD/GBP is trading in the region of 0.5351, NZD/EUR is trading in the region of 0.6255 and NZD/USD is trading in the region of 0.8112
Prior to the Bank of Canada’s decision to retain the benchmark rate at 1 per cent the ‘Loonie’ gained on its American counterpart. The Canadian Dollar experienced little movement in the aftermath of the rate decision, which was in line with economists’ estimations. Ahead of the weekend, investors will be looking to tomorrow’s release of Canadian first quarter GDP figures.
CAD/GBP is trading in the region of 0.6376, CAD/EUR is trading in the region of 0.7458 and CAD/USD is trading in the region of 0.9670
These exchange rates were correct as of 9:00 am