UK avoids triple-dip recession

foreign_exchange_rates

Pound Sterling

As data revealed that the UK avoided entering an unprecedented triple dip recession by posting 0.3 per cent growth in the first quarter of this year, the Pound climbed against its major peers, achieving 1.5480 against the US Dollar and 84.28. Sterling is now in line to post a weekly gain of 1.5 per cent against the ‘Greenback’ – its most significant 5-day advance since June of last year.

The Pound is presently trading against the Euro in the region of 1.1863 and is trading against the US Dollar in the region of 1.5443

US Dollar

During the Bank of Japan’s second policy meeting with Haruhiko Kuroda at the helm the central bank vowed to continue with the stimulus measures announced earlier this year. After the meeting the US Dollar fell against a broadly strengthening Yen. The safe-haven US Dollar also declined against several of its other major peers as better-than-anticipated UK and US data increased risk appetite. This afternoon’s US GDP figures could inspire additional fluctuations.

The US Dollar is presently trading against the Pound in the region of 0.6475 and is trading against the Euro in the region of 0.7676

Euro

This week several pieces of disappointing economic data for the Eurozone have heightened fears concerning the currency bloc’s recovery. As a result the Euro is poised to record a weekly decline against most of its competitors. Yesterday reports showed that Spanish unemployment rose to a fresh high while French jobless claims hit their highest ever level. Business confidence in the Eurozone’s largest economy, Germany, was also shown to be waning. Of interest today is the ECB announcement of 3-year LTRO repayment.

The Euro is presently trading against the Pound in the region of 0.8430 and is trading against the US Dollar in the region of 1.3023

Australian Dollar

Speculation that central banks will maintain stimulus measures in order to support the global economy allowed the ‘Aussie’ to advance on the US Dollar for a third day. The Australian Dollar climbed to 1.0321 against its American counterpart during local trade but slipped against the Japanese Yen following the Bank of Japan’s policy meeting. The BOJ forecast that by 2015 core inflation, excluding sales tax effects would stand at 1.9 per cent.

The Australian Dollar is presently trading against the Pound in the region of 0.6669, is trading against the Euro in the region of 0.7910 and is trading against the US Dollar in the region of 1.0313

New Zealand Dollar

After data revealed that New Zealand’s quarterly exports to China exceeded those to Australia for the first time the ‘Kiwi’ advanced on the ‘Aussie’, taking its total weekly gain against its neighbouring currency to 0.9 per cent. The New Zealand Dollar also strengthened against the US Dollar, hitting 85.30 US cents during local trade.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5520, is trading against the Euro in the region of 0.6541 and is trading against the US Dollar in the region of 0.8519

Canadian Dollar

Better than expected economic data from the UK and US triggered a rally in the price of crude oil, Canada’s main export. Consequently, the Canadian Dollar posted its most significant gain against the ‘Greenback’ since the beginning of January. The ‘Loonie’ advanced to 98.06 US Cents and is likely to experience additional movement following the release of US GDP and personal consumption data.

The Canadian Dollar is presently trading against the Pound in the region of 0.6350, is trading against the Euro in the region of 0.7528 and is trading against the US Dollar in the region of 0.9802

These exchange rates were correct as of 9:00 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.