Prior to the release of a report expected to show that the UK’s public finances improved last month, the Pound was holding steady against rivals including the US Dollar and Euro. Although Sterling is currently trading within the region of a two-month high against the ‘Greenback’, with minutes from the FOMC policy meeting due for publication later today significant volatility in the GBP/USD pairing may occur.
GBP/EUR is trading in the region of 1.1690 and GBP/USD is trading in the region of 1.5654
The US Dollar advanced on its Japanese, Australian and New Zealand counterparts overnight as investors speculate on the content of minutes from the latest FOMC meeting. If hints are dropped that the tapering of stimulus will begin in September the ‘Greenback’ could enjoy a bullish relationship with its rivals in the days ahead.
USD/GBP is trading in the region of 0.6384 and USD/EUR is trading in the region of 0.7468
Expectations that tomorrow’s services/manufacturing PMI for Germany and the Eurozone will show improvement kept the Euro trading within the region of a six-month high against the US Dollar. Although European data is limited today, news from the US could inspire Euro fluctuations.
EUR/GBP is trading in the region of 0.8552 and EUR/USD is trading in the region of 1.3398
The ‘Aussie’s bearish relationship with its US counterpart continued during the local session, and the South Pacific asset extended declines against several of its other most traded peers as US concerns continue to dictate sentiment. The Australian Westpac leading index was unchanged in June following a negatively revised decline of 0.1 per cent in May.
AUD/GBP is trading in the region of 0.5764, AUD/EUR is trading in the region of 0.6734 and AUD/USD is trading in the region of 0.9037
New Zealand Dollar
Commodity-driven currencies like the New Zealand Dollar maintained their negative outlook overnight as the shadow of the FOMC minutes loomed. The ‘Kiwi’ was also adversely affected by the news that credit card spending in the nation declined by 0.3 per cent in July while June’s gain was negatively revised to 1.4 per cent.
NZD/GBP is trading in the region of 0.5050, NZD/EUR is trading in the region of 0.5907 and NZD/USD is trading in the region of 0.7924
With the highly anticipated publication of minutes from the Federal Open Market Committee’s most recent policy meeting only hours away the ‘Loonie’ slumped to a two-week low against the ‘Greenback’. If the Fed implies that the current level of asset purchases will be reduced in the months ahead the Canadian Dollar could extend declines.
CAD/GBP is trading in the region of 0.6122, CAD/EUR is trading in the region of 0.7159 and CAD/USD is trading in the region of 0.9586
These exchange rates were correct as of 9:10 am