For a third consecutive day the Pound slid against its US counterpart. The British currency hit its lowest level for two weeks against the ‘Greenback’ after the Federal Reserve intimated that quantitative easing could be tapered as the year progresses, should US economic growth stay on target. Today’s UK data, including retail sales figures, could be responsible for further Sterling movement.
GBP/EUR is trading in the region of 1.1674 and GBP/USD is trading in the region of 1.5440
The US Dollar broadly strengthened during the local session as Federal Reserve Chairman Ben Bernanke reasserted his commitment to reducing fiscal stimulus if US economic recovery should stay on track. The ‘Greenback’ advanced on the majority of its rivals and could experience further movement as US employment and housing figures are released from 13:30 GMT.
USD/GBP is trading in the region of 0.6473 and USD/EUR is trading in the region of 0.7552
Although the Euro, along with the majority of other major currencies, fell against the US Dollar in the wake of the Federal Reserve’s announcement, the common currency fluctuated as the European session began and manufacturing/services PMI for the Eurozone exceeded expectations. Gains were limited however as German manufacturing PMI disappointed and investors looked ahead to this afternoon’s meeting of Eurozone finance ministers.
EUR/GBP is trading in the region of 0.8566 and EUR/USD is trading in the region of 1.3224
After Chinese manufacturing PMI unexpectedly dropped to 48.3 in June, defying economist’s estimates for a level of 49.1, and with the Fed considering reining in QE in the near future, the ‘Aussie’ plummeted to a three-year low against the US Dollar – hitting 92.11 US cents. The South Pacific currency also lost ground against several of its other major peers.
AUD/GBP is trading in the region of 0.5971, AUD/EUR is trading in the region of 0.6972 and AUD/USD is trading in the region of 0.9216
New Zealand Dollar
Disappointing domestic growth data, less-than-impressive Chinese manufacturing figures and influential news from the US caused the New Zealand Dollar to plummet during the local session. The ‘Kiwi’ fell to 78.54 US cents as a report showed that New Zealand’s economy grew by just 0.3 per cent in the first quarter of the year.
NZD/GBP is trading in the region of 0.5078, NZD/EUR is trading in the region of 0.5918 and NZD/USD is trading in the region of 0.7850
The Fed’s announcement regarding tapering fiscal stimulus saw the Canadian Dollar shed gains made earlier in the North American session. The ‘Loonie’ initially advanced as the new Governor of the Bank of Canada made his first public speech, but later weakened to 97.34 US cents. Tomorrow’s domestic data is likely to be a catalyst for further ‘Loonie’ movement.
CAD/GBP is trading in the region of 0.6283, CAD/EUR is trading in the region of 0.7336 and CAD/USD is trading in the region of 0.9698
These exchange rates were correct as of 9:20 am