The Pound weakened against the Euro overnight

money_euros

Pound Sterling

The Pound weakened against peers including the US Dollar and Euro overnight as the market reacted to the Federal Open Market Committee’s policy meeting and investors looked ahead to today’s Bank of England rate decision. Sterling fluctuations can be expected.

GBP/EUR is trading in the region of 1.1444 and GBP/USD is trading in the region of 1.5150

US Dollar

Although the Federal Open Market Committee’s policy statement was a little more dovish than industry experts expected, the US Dollar largely retained gains against its rivals prior to the publication of influential US employment and manufacturing data. Economists are forecasting that the unemployment rate declined to 7.5 per cent. If this prediction proves accurate the odds of the FOMC reducing the rate of bond buying in September will rise once more.

USD/GBP is trading in the region of 0.6598 and USD/EUR is trading in the region of 0.7536

Euro

Yesterday’s unexpectedly good Eurozone data, including better-than-forecast German employment figures, helped the Euro achieve a fresh four and a half month high against its British counterpart. With manufacturing PMI for the Eurozone and Germany beating expectations this morning, the Euro could continue to strengthen ahead of the European Central Bank’s rate decision.

EUR/GBP is trading in the region of 0.8739 and EUR/USD is trading in the region of 1.3238

Australian Dollar

An unforeseen advance in manufacturing PMI for China helped the ‘Aussie’ recoup previous losses during the local session and edge away from an almost three-year low against the US Dollar. However, the South Pacific currency remains under pressure amid ongoing speculation regarding the likelihood of the Reserve Bank of Australia issuing a rate cut next week.

AUD/GBP is trading in the region of 0.5916, AUD/EUR is trading in the region of 0.6756 and AUD/USD is trading in the region of 0.8970

New Zealand Dollar

Although better-than-expected manufacturing data for China boosted New Zealand’s trade prospects the ‘Kiwi’ extended declines against the ‘Greenback’ for a fourth day. An absence of pertinent economic news for New Zealand means that ‘Kiwi’ movement is most likely to occur in response to global economic developments for the rest of the week.

NZD/GBP is trading in the region of 0.5253, NZD/EUR is trading in the region of 0.5997 and NZD/USD is trading in the region of 0.7958

Canadian Dollar

Indications of economic recovery in the US (Canada’s most significant trading partner) helped the ‘Loonie’ advance on the majority of its most traded rivals during the local session. Despite yesterday’s Canadian growth figures disappointing expectations, the commodity-driven currency was boosted by speculation that the Bank of Canada may tighten monetary policy before the end of 2014.

CAD/GBP is trading in the region of 0.6407, CAD/EUR is trading in the region of 0.7334 and CAD/USD is trading in the region of 0.9714

These exchange rates were correct as of 9:15 am

The Expat Hub
This post was written by
If you’ve already moved abroad, if you’re in the process of moving abroad or if you’re only thinking about it, the Expat Hub is here for you. For expatriates looking for advice, support and information, we’re the number one online stop.