US Dollar bullish

Pound Sterling

After falling to a six-week low against a broadly bullish US Dollar the Pound experienced a slight rebound on the back of comments made by Bank of England Governor Mervyn King. Yesterday King announced that the Monetary Policy Committee was assessing the extent of UK economic recovery and was ready to employ more stimulus measures should it prove necessary. Tomorrow’s prelim third-quarter GDP figures will provide a good indication of the state of play and Sterling volatility can be expected following the data release.
The Pound is presently trading against the Euro in the region of 1.2300 and is trading against the US Dollar in the region of 1.5981

US Dollar

In light of the regional rating cuts in Spain and other Eurozone concerns, heightened risk aversion left the US Dollar buoyed. The bullish ‘Greenback’ was able to make significant advances against several of its peers, including the British Pound, and remained hovering close to a twelve-week high against the Japanese Yen. Investors will be watching out for today’s release of the US Home Sales figure. Analysts are predicting an improvement but if the number should come in even higher than expected the US Dollar could further extend its recent gains.
The US Dollar is presently trading against the Pound in the region of 0.6257 and is trading against the Euro in the region of 0.7695

Euro

Despite negative developments in Spain investors remain uncertain over whether the troubled nation will seek a bailout, allowing the Euro’s bearish trend against the majority of its competitors to continue. The common currency shed recent gains made against the British Pound whilst against the US Dollar the Euro hit its lowest level for a week. With reports expected to show a ninth month of contraction in Eurozone manufacturing and service industries the Euro could be pushed lower still before the end of trade.
The Euro is presently trading against the Pound in the region of 0.8127 and is trading against the US Dollar in the region of 1.2992

Australian Dollar

The Australian Dollar was able to slightly recoup the recent losses recorded against the majority of its main trading partners after Asian prospects appeared to improve. A private report hinted at the end of the slowdown in Chinese manufacturing. This more positive outlook for exports pushed the ‘Aussie’ out of its four-day slump and higher against its peers. The likelihood of the South Pacific nation’s central bank cutting interest rates was also improved by a faster-than-expected increase in Australia’s consumer price index.
The Australian Dollar is presently trading against the Pound in the region of 0.6456, is trading against the Euro in the region of 0.7938 and is trading against the US Dollar in the region of 1.0311

New Zealand Dollar

Positive developments in Asia and Australia helped the ‘Aussie’ broadly strengthen, pushing the New Zealand Dollar to a four-week low against its neighbouring currency. The optimistic Chinese manufacturing figures did allow the ‘Kiwi’ to gain on the Euro but with the New Zealand Interest Rate Announcement scheduled for this afternoon investors are remaining wary. The New Zealand Dollar posted modest losses against the British Pound and more significant losses against the US Dollar and Japanese Yen.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5085, is trading against the Euro in the region of 0.6257 and is trading against the US Dollar in the region of 0.8119

Canadian Dollar

Despite crashing against several of its contemporaries prior to the Canadian central bank’s rates announcement the ‘Loonie’ was able to enjoy a rebound after its completion. The Canadian Dollar advanced on its rivals as Bank of Canada Governor Mark Carney heavily hinted that interest rates may have to be raised for the first time in over two years if the record levels of household debt are to be brought under control. However, better than expected US Home Sales could temper or reverse the currency’s recent gains.
The Canadian Dollar is presently trading against the Pound in the region of 0.6308, is trading against the Euro in the region of 0.7775 and is trading against the US Dollar in the region of 1.0079

 

Richard Martin
This post was written by
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.