The US Dollar advanced on the Euro

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Pound Sterling

After declining against the US Dollar for two days the Pound was able to post a modest gain this morning. Sterling also climbed slightly against the Euro on the expectation that this morning’s retail figures for the UK will show improvement. Economists are expecting that sales including fuel will have increased by 0.5 per cent from December. If the actual figures meet or exceed this prediction the Pound could advance further.

The Pound is presently trading against the Euro in the region of 1.1653 and is trading against the US Dollar in the region of 1.5528

US Dollar

The US Dollar advanced on the Euro yesterday following a stream of worse-than-forecast data for the currency bloc. However, speculation regarding the outcome of the volatile Group of 20 meeting caused the Japanese Yen to rise, with the Asian currency gaining 0.5 per cent on the ‘Greenback’. The US Dollar also declined slightly against the Pound as the British currency modestly strengthened prior to this morning UK retail sales data. Also of interest today are US industrial production and manufacturing production figures.

The US Dollar is presently trading against the Pound in the region of 0.6440 and is trading against the Euro in the region of 0.7505

Euro

Yesterday’s worse-than-expected 4Q GDP figures for Germany, France, Italy and the Eurozone caused the Euro to broadly soften yesterday, recording notable losses against several of its most traded peers. Additional Euro movement could occur today in response to any decisive news from the meeting of the Group of 20 as well in reaction to data from the currency block, particularly the European Central Bank’s announcement of its 3 year LTRO repayment.

The Euro is presently trading against the Pound in the region of 0.8585 and is trading against the US Dollar in the region of 1.3324

Australian Dollar

A lack of Australian economic news limited movement in the nation’s currency yesterday, but positive developments in New Zealand did see the ‘Kiwi’ hit a two and a half year high against the ‘Aussie’. Although fluctuations could occur today in response to global economic developments, investors will be looking ahead to next week’s release of the Reserve Bank of Australia’s policy minutes.

The Australian Dollar is presently trading against the Pound in the region of 0.6672, is trading against the Euro in the region of 0.7771 and is trading against the US Dollar in the region of 1.0358

New Zealand Dollar

The ‘Kiwi’ continues to trade higher against its Australian counterpart as retail sales for New Zealand were shown to have improved at a more rapid pace than expected. In light of the recent positive data for the South Pacific nation it grows increasingly likely that the Reserve Bank of New Zealand will raise interest rates. Consequently, the New Zealand Dollar also achieved a 17-month high against the ‘Greenback’.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5481, is trading against the Euro in the region of 0.6356 and is trading against the US Dollar in the region of 0.8509

Canadian Dollar

Poor GDP data for the Eurozone allowed the ‘Loonie’ to advance yesterday. Worse than expected 4Q economic contraction in the 17-nation currency bloc triggered widespread Euro declines, but the Canadian Dollar also benefited from a gain in the price of crude oil. Of interest today are Canadian existing home sales figures.

The Canadian Dollar is presently trading against the Pound in the region of 0.6434, is trading against the Euro in the region of 0.7498 and is trading against the US Dollar in the region of 0.9990

These exchange rates were correct as of 9:23 am

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.