With the Bank of England and European Central Bank policy statements imminent the Pound weakened to its lowest level against the Euro since March. Sterling was also weaker against the US Dollar, despite UK consumer confidence rising by more than expected. US news will be the big driver of market movement today.
GBP/EUR is trading in the region of 1.1466 and GBP/USD is trading in the region of 1.5210
Ahead of the Federal Reserve’s highly anticipated policy statement, the US Dollar was trading within touching distance of a six-week low against the Euro. The ‘Greenback’ softened against several of its other most traded peers as investors speculate on the likelihood of the Fed giving a provisional timeline for the reining in of QE.
USD/GBP is trading in the region of 0.6578 and USD/EUR is trading in the region of 0.7539
Despite an unexpected drop in German retail sales the Euro was trading strongly against its peers as the European session began. The common currency went on to benefit from the news that German unemployment declined by 7,000 in July – economists expected stagnation. Additional common currency fluctuations could occur in reaction to Eurozone employment and inflation figures.
EUR/GBP is trading in the region of 0.8721 and EUR/USD is trading in the region of 1.3264
Speculation surrounding the likelihood of the Reserve Bank of Australia issuing a rate cut caused the ‘Aussie’ to fall close to a three-year low against the US Dollar overnight. Although Australian private sector credit rose by more than forecast, the South Pacific currency maintains a bearish relationship with several of its main rivals.
AUD/GBP is trading in the region of 0.5931, AUD/EUR is trading in the region of 0.6814 and AUD/USD is trading in the region of 0.9018
New Zealand Dollar
While a business confidence survey for New Zealand climbed to 52.8 in July from 50.1, the expectation of a disappointing manufacturing report for China weighed on the ‘Kiwi’. The New Zealand Dollar continued to trade strongly against its Australian counterpart but slipped against the US Dollar for a third day.
NZD/GBP is trading in the region of 0.5244, NZD/EUR is trading in the region of 0.6021 and NZD/USD is trading in the region of 0.7973
After easing away from a recent month-high against the US Dollar the ‘Loonie’ ended trade relatively flat. Today we can expect the commodity-driven currency to experience volatility as a result of Canadian GDP figures.
CAD/GBP is trading in the region of 0.6372, CAD/EUR is trading in the region of 0.7307 and CAD/USD is trading in the region of 0.9692
These exchange rates were correct as of 9:15 am