US Dollar has recorded modest declines

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Pound Sterling

After losing ground against the Euro following a Nationwide housing report, the Pound was little changed prior to this morning’s UK manufacturing data. Although the Nationwide figures revealed a second month of increasing home prices, the news was offset by a significant jump in German retail sales. Economists are expecting today’s manufacturing data to show expansion for the third consecutive month. If this prediction proves accurate Sterling could climb on its peers.

The Pound is presently trading against the Euro in the region of 1.1556 and is trading against the US Dollar in the region of 1.5184

US Dollar

Already this morning the US Dollar has recorded modest declines against the Euro following the release of positive data for Germany, the Eurozone’s largest economy. With US manufacturing data expected to reveal a third month of expansion and the highly anticipated series of US spending cuts beginning today, additional movement can be expected. Of particular interest in the hours ahead are US final Markit PMI, U. of Michigan Confidence and ISM manufacturing figures.

The US Dollar is presently trading against the Pound in the region of 0.6596 and is trading against the Euro in the region of 0.7650

Euro

After German retail sales recorded the largest monthly gain for six years, the Euro strengthened against the US Dollar. The common currency could also benefit as trade continues from a slightly improved German PMI. Further movement could occur today following the release of Eurozone unemployment rate/consumer price data.

The Euro is presently trading against the Pound in the region of 0.8626 and is trading against the US Dollar in the region of 1.3093

Australian Dollar

After dropping against its peers following the release of disappointing Chinese manufacturing data the ‘Aussie’ enjoyed a rebound as the odds of the Reserve Bank of Australia issuing a rates cut decrease. The central bank’s rate decision will be announced next Tuesday.

The Australian Dollar is presently trading against the Pound in the region of 0.6741, is trading against the Euro in the region of 0.7823 and is trading against the US Dollar in the region of 1.0225

New Zealand Dollar

Although a government report revealed that New Zealand’s terms of trade dropped by 1.3 per cent in the fourth quarter of 2012, the ‘Kiwi’ was still able to climb against safe-haven counterparts the US Dollar and Japanese Yen. The New Zealand Dollar’s advance was triggered by decreasing Asian stock losses. The next piece of New Zealand data to look out for is commodity price figures, due for release on Monday.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5449, is trading against the Euro in the region of 0.6339 and is trading against the US Dollar in the region of 0.8273

Canadian Dollar

The ‘Loonie’ declined again yesterday on the expectation of poor Canadian GDP data, hitting a new eight-month low against the US Dollar. Analysts are now forecasting that the Canadian Dollar will continue to drop, perhaps falling as low as 70 US cents within the next ten years. Canadian 4Q GDP will be released at 13:30 pm GMT.

The Canadian Dollar is presently trading against the Pound in the region of 0.6400, is trading against the Euro in the region of 0.7420 and is trading against the US Dollar in the region of 0.9709

These exchange rates were correct as of 9:13 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.