As the European session opened the Pound remained supported against its peers as investors await the publication of UK construction data. With economists’ forecasting that the report will show that the sector expanded in August, Sterling continues to trade in the region of a two-month high against the Euro.
GBP/EUR is trading in the region of 1.1817 and GBP/USD is trading in the region of 1.5558
With yesterday’s US national holiday inspiring quiet trade, the US Dollar experienced minimal movement yesterday. However, the safe-haven asset is likely to fluctuate in response to the release of today’s US ISM manufacturing gauge. If the reading is above the 54 estimated by economists the odds of the Federal Reserve tapering stimulus in the near future will rise and the ‘Greenback’ could advance on its rivals.
USD/GBP is trading in the region of 0.6430 and USD/EUR is trading in the region of 0.7596
Even with yesterday’s positive manufacturing report for the Eurozone, the Euro remains trapped in a bearish relationship with its British counterpart. Although the Eurozone’s producer price index (due for publication at 10:00 GMT) will be of interest, EUR/GBP movement will largely be driven by today’s UK news.
EUR/GBP is trading in the region of 0.8464 and EUR/USD is trading in the region of 1.3165
In the aftermath of the Reserve Bank of Australia’s policy meeting, at which rates were held at record lows and no mention was made of further easing, the ‘Aussie’ approached a week high against its US rival. The RBA announcement helped the South Pacific currency recover losses sustained following the release of disappointing domestic retail sales and current account data.
AUD/GBP is trading in the region of 0.5808, AUD/EUR is trading in the region of 0.6860 and AUD/USD is trading in the region of 0.9033
New Zealand Dollar
After a private report showed that New Zealand’s commodity prices rose the ‘Kiwi’ extended gains against several of its main rivals. The currency was boosted yesterday by an encouraging manufacturing report for China, and news that domestic commodity prices climbed by 0.7 per cent in August helped the New Zealand Dollar hit 78.27 US cents.
NZD/GBP is trading in the region of 0.5021, NZD/EUR is trading in the region of 0.5933 and NZD/USD is trading in the region of 0.7812
The Canadian Dollar experienced relatively static trading yesterday as North American markets closed for Labour Day celebrations. Although no local news is on the cards for today, with some influential US data scheduled for release the ‘Loonie’ could fluctuate.
CAD/GBP is trading in the region of 0.6097, CAD/EUR is trading in the region of 0.7204 and CAD/USD is trading in the region of 0.9483
These exchange rates were correct as of 9:20 am