The US Dollar continued to advance

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Pound Sterling

After top ratings agency Moody’s cut the UK’s AAA credit rating, due to weakness in the nation’s growth outlook, the Pound plummeted to an almost 16-month low against the Euro. Sterling continued to trade in the region of a 2 ½ year low against the US Dollar. Further Pound movement could occur today in response to UK house purchase loans data, but investors will also be looking ahead to this week’s 4Q GDP figures.

The Pound is presently trading against the Euro in the region of 1.1455 and is trading against the US Dollar in the region of 1.5149

US Dollar

The US Dollar continued to advance on the Japanese Yen as the odds of the Japanese government assigning two firm supporters of monetary easing to key positions in the nation’s central bank increased, with the Dollar achieving as much as 94.77 Yen. The ‘Greenback’ was also able to hold recent gains against the British Pound in the wake of Moody’s UK credit downgrade. The main causes of Dollar movement today will be the Chicago Fed national activity index and the results of the Italian election.

The US Dollar is presently trading against the Pound in the region of 0.6602 and is trading against the Euro in the region of 0.7562

Euro

With the results of the Italian election imminent the Euro is likely to experience significant volatility today. The common currency has already posted notable gains against its British and Japanese rivals as both broadly weakened as a result of home grown developments. Also of interest this week is German employment data and Eurozone CPI figures.

The Euro is presently trading against the Pound in the region of 0.8730 and is trading against the US Dollar in the region of 1.3223

Australian Dollar

The ‘Aussie’ fell against the majority of its most traded peers after a preliminary Chinese manufacturing survey revealed that expansion in the sector is slowing. With the prospects for Australia’s exports dimmed by the disappointing Chinese news the Australian Dollar recorded notable losses against its American counterpart, although it was able to gain on the Japanese Yen. With limited news from the South Pacific on the cards for today additional ‘Aussie’ fluctuations are likely to occur in response to global economic developments.

The Australian Dollar is presently trading against the Pound in the region of 0.6791, is trading against the Euro in the region of 0.7777 and is trading against the US Dollar in the region of 1.0290

New Zealand Dollar

After gaining on Friday following a positive credit-card spending report the New Zealand Dollar declined slightly against its American rival following the publication of a worse-than-forecast manufacturing survey for China. The ‘Kiwi’ did climb by 0.7 per cent on the Yen however, as speculation regarding who will take over prominent positions within the Japanese central bank caused the Asian currency to broadly weaken.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5525, is trading against the Euro in the region of 0.6350 and is trading against the US Dollar in the region of 0.8386

Canadian Dollar

At the close of last week the ‘Loonie’ dropped to an 8-month low against the US Dollar. The Canadian currency experienced widespread losses as a disappointing retail sales report became the latest in a string of lacklustre data for the nation, indicating weakening in the Canadian economy. With little influential Canadian data scheduled for release in the first half of this week, movement in the Canadian Dollar will be limited but could occur as a result of global economic developments.

The Canadian Dollar is presently trading against the Pound in the region of 0.6461, is trading against the Euro in the region of 0.7400 and is trading against the US Dollar in the region of 0.9783

These exchange rates were correct as of 9:10 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.