Despite an industry report showing that UK house prices climbed for a fifth consecutive month in June the Pound was little changed against rivals including the US Dollar and Euro. Sterling remains under pressure following the comments issued by former Bank of England Governor Mervyn King regarding ongoing weaknesses in the British economy.
GBP/EUR is trading in the region of 1.1665 and GBP/USD is trading in the region of 1.5219
The ‘Greenback’ was able to advance on the Yen overnight, hitting its strongest level for more than three weeks. The safe-haven US Dollar was supported by the expectation that a report due for release today will show that manufacturing in the US rebounded, giving the Federal Reserve more incentive to trim bond buying.
USD/GBP is trading in the region of 0.6571 and USD/EUR is trading in the region of 0.7674
Influential Eurozone data may cause Euro fluctuations in the hours ahead. Already separate reports have shown that French, Italian, Spanish and Eurozone manufacturing PMI exceeded estimates, while German PMI came in slightly below forecasts. The Italian unemployment rate also unexpectedly rose to 12.2 per cent in May. Today’s Eurozone CPI data is likely to cause additional Euro movement.
EUR/GBP is trading in the region of 0.8577 and EUR/USD is trading in the region of 1.3049
Ahead of the Reserve Bank of Australia’s rate decision, the ‘Aussie’ was able to rebound from an almost three-year low. The South Pacific currency was bolstered by speculation that the central bank will refrain from issuing a rate cut tomorrow as well gaining support from data showing that an index of Australian manufacturing climbed to 49.6 in June from 43.8 the previous month. However, concern regarding economic growth in China (a major trading partner for Australia) limited ‘Aussie’ demand.
AUD/GBP is trading in the region of 0.6044, AUD/EUR is trading in the region of 0.7063 and AUD/USD is trading in the region of 0.9170
New Zealand Dollar
Although the New Zealand Dollar was able to rally from the lows recorded last week, gains in the currency were tempered by the news that China’s manufacturing PMI slipped from 50.8 in May to 50.1 in June – a further worrying sign of economic slowdown in the world’s largest economy.
NZD/GBP is trading in the region of 0.5108, NZD/EUR is trading in the region of 0.5957 and NZD/USD is trading in the region of 0.7755
While the Canadian Dollar initially strengthened following the publication of domestic GDP figures on Friday, signs that Canada’s economic growth is being outpaced by the US later saw the ‘Loonie’ plummet to 95.07 US cents and 1.0519 Canadian Dollars. With local economic news thin on the ground today additional Canadian Dollar movement is most likely to result from US manufacturing data.
CAD/GBP is trading in the region of 0.6248, CAD/EUR is trading in the region of 0.7287 and CAD/USD is trading in the region of 0.9509
These exchange rates were correct as of 9:20 am