US Dollar bullish

Pound Sterling

With Bank of England Policy makers scheduled to announce the results of their latest meeting this afternoon the Pound experienced little movement against both the Euro and US Dollar after rising slightly from its near six-week low against the latter currency. In the past week the Pound has shed 0.6 per cent, making it one of the worst performing developed-market currencies. As well as the BoE rates decision, influential data releases from the US and Eurozone could trigger Sterling volatility in the hours ahead.

The Pound is presently trading against the Euro in the region of 1.2257 and is trading against the US Dollar in the region of 1.6009

US Dollar

The US Dollar was able to enjoy a bullish relationship with the majority of its peers yesterday against a backdrop of unexpectedly poor German economic data and continued debate over the issue of monetary easing in Japan. Today fluctuations in the safe-haven ‘Greenback’ could be caused by US jobless claims data as well as by highly volatile economic news for the Eurozone.

The US Dollar is presently trading against the Pound in the region of 0.6240 and is trading against the Euro in the region of 0.7655

Euro

Worse-than-expected industrial production figures for Germany fanned fears that the 17 nation currency bloc’s recession may prove deeper than originally thought. Consequently the Euro posted losses against several of its most traded peers yesterday, with notable declines against safe-haven rivals the US Dollar and Japanese Yen. Extreme marketplace volatility can be expected to occur this afternoon following the European Central Bank’s rate decision and press conference. If an unexpected rates cut does occur the Euro could fall in the hours ahead.

The Euro is presently trading against the Pound in the region of 0.8156 and is trading against the US Dollar in the region of 1.3060

Australian Dollar

After Chinese data revealed that the nations imports rose to record levels in its largest overseas market the Australian Dollar was able to achieve a three-week high against its American counterpart and a four-year high against the safe-haven Japanese Yen. The more optimistic outlook for China, the world’s second largest economy and one of Australia’s major trading partners, helped the ‘Aussie’ rise 0.7 per cent against the Japanese Yen and 0.3 per cent against the US Dollar. The South Pacific currency was also bolstered by news that Australian home-building approvals increased for the third time over the past four months. Of interest to the ‘Aussie’ today are developments in the Eurozone and US as well as the release of Japanese trade balance figures.

The Australian Dollar is presently trading against the Pound in the region of 0.6592, is trading against the Euro in the region of 0.8084 and is trading against the US Dollar in the region of 1.0561

New Zealand Dollar

An improved economic outlook for China pushed the New Zealand Dollar to its highest level against the Japanese Yen since 2008. The better-than-expected Chinese data boosted Asian stocks and lifted the ‘Kiwi’ from 73.78 Yen to 74.10 Yen, as well as helping it gain 0.1 per cent on the US Dollar, before a report showed that New Zealand’s annual trade deficit widened to the most for over three years with imports hitting a four year high. Movement in the ‘Kiwi’ could occur today on the back of influential economic data releases in the US, Eurozone and Japan.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5247, is trading against the Euro in the region of 0.6424 and is trading against the US Dollar in the region of 0.8410

Canadian Dollar

Prior to today’s European Central Bank rates decision/press conference the Canadian Dollar was able to trade close to a three-week high against the common currency. Speculation that the ECB may hint at a near-future rates cut pushed the Canadian Dollar 0.1 per cent higher against the Euro, although the ‘Loonie’ did drop 0.1 per cent against a broadly strengthening US Dollar. Canadian data of low volatility, including building permits for November, is less likely to cause ‘Loonie’ movement in the hours ahead than economic news from the Eurozone and US.

The Canadian Dollar is presently trading against the Pound in the region of 0.6334, is trading against the Euro in the region of 0.7765 and is trading against the US Dollar in the region of 1.0141

 

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.