After UK construction was shown to have contracted by less-than-forecast last month the Pound gained against the US Dollar. Sterling also advanced on the Euro following the ECB’s policy announcement. The main cause of Pound movement this morning will be UK services PMI for April. Economists have forecast that the gauge will be unchanged from last month, so a surprising result could trigger fluctuations.
GBP/EUR is trading in the region of 1.1865 and GBP/USD is trading in the region of 1.5534
After the ECB issued a rate cut and intimated that it was willing to adjust stimulus further in order to stimulate the Eurozone’s flagging economy the US Dollar advanced against the Euro by the most significant amount for two weeks. However, the ‘Greenback’s gains were halted by the expectation that today’s US job data may disappoint.
USD/GBP is trading in the region of 0.6436 and USD/EUR is trading in the region of 0.7638
Although the Euro initially gained in the aftermath of the ECB’s rate cut, the common currency went on to slide against all but one of its main rivals. The Euro’s decline was triggered by remarks made by ECB President Mario Draghi regarding the possibility of the central bank charging financial institutions to hold excess reserves. Today’s Eurozone Producer Price Index is likely to cause Euro movement.
EUR/GBP is trading in the region of 0.8430 and EUR/USD is trading in the region of 1.3094
A weaker-than-expected Australian AiG performance of service index coupled with disappointing Chinese manufacturing data led to the ‘Aussie’ declining against several of its main counterparts. The Australian Dollar dropped to its lowest level against the ‘Kiwi’ since 2009 after posting a weekly decline of 0.6 against its neighbouring currency.
AUD/GBP is trading in the region of 0.6601, AUD/EUR is trading in the region of 0.7828 and AUD/USD is trading in the region of 1.0251
New Zealand Dollar
The New Zealand Dollar gained on its US and Australian counterparts during local trade as the ‘Greenback’ slipped ahead of US non-farm payrolls figures and the ‘Aussie’ fell in response to poor domestic data. The ‘Kiwi’ also posted a notable advance against the Yen.
NZD/GBP is trading in the region of 0.5486, NZD/EUR is trading in the region of 0.6523 and NZD/USD is trading in the region of 0.8520
Yesterday Stephen Poloz, the head of Canada’s export-financing agency, was named as the next leader of the Bank of Canada. Poloz will take the reins of the central bank when Mark Carney leaves to take over the Bank of England. After the announcement was made the ‘Loonie’ slipped against several of its counterparts. Additional Canadian Dollar movement could occur in the hours ahead as a result of US employment data.
CAD/GBP is trading in the region of 0.6360, EUR/USD is trading in the region of 0.7545 and CAD/USD is trading in the region of 0.9879
These exchange rates were correct as of 9:00 am