US Dollar could continue rising

Pound Sterling

Prior to the disclosure of minutes from the Bank of England’s most recent policy meeting sterling made slight gains against the dollar, hovering close to the four month high achieved on Monday. After the minutes revealed that policy makers unanimously voted to keep the current policy in place the pound was only slightly affected. Sterling has also held steady against a euro faltering under the weight of Spanish uncertainty and advanced against the yen, hitting a four-month high. Strategists from Credit Suisse have forecast further gains for the pound against the euro, going so far as to predict that the latter currency could be trading at 78 pence by the end of the year.

The Pound is presently trading against the Euro in the region of 1.2461 and is trading against the US Dollar in the region of 1.6232

US Dollar

With US Building Permit and Existing Home Sales figures due for release later today the US dollar is expected to be subject to significant volatility in the hours ahead. Recent advances made by the major currency could be reversed if the data comes in below expectations. However, if either of the fiscal indicators signal US economic growth the US dollar could continue moving in an upward trajectory.

The US Dollar is presently trading against the Pound in the region of 0.6158 and is trading against the Euro in the region of 0.7675

Euro

Following remarks made by Spain’s deputy Prime Minister Soraya Saenz, which confirmed continuing hesitancy regarding a Spanish bailout, the euro fell against all other major currencies. Further euro movement is expected to follow the auctioning of German bonds and the release of euro-zone construction output data later today.

The Euro is presently trading against the Pound in the region of 0.8031 and is trading against the US Dollar in the region of 1.3050

Australian Dollar

The Australian dollar may have fallen by 2.6 per cent over the course of last month but there are now indications that the tide down-under may be turning. The Aussie responded to news of Japans increased fiscal stimulus measures gaining against the yen by 0.4 per cent. Confidence in Australia’s economic resilience was also confirmed after top ratings agency Standard & Poor left Australia’s coveted AAA rating untouched which resulted in the Australian dollar advancing against the pound, euro and US dollar.

The Australian Dollar is presently trading against the Pound in the region of 0.6436, is trading against the Euro in the region of 0.8004 and is trading against the US Dollar in the region of 1.0459

New Zealand Dollar

Although little changed against the US dollar, following the Bank of Japan’s decision to instigate a more aggressive quantitative easing policy the New Zealand dollar fought its way to a five-day high against the yen. After Standard & Poor’s rating agency reaffirmed Australia’s AAA rating the Kiwi currency made a minor gain, edging up to 79.29 Australian cents. It has also made slight advances against the euro and pound.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5095, is trading against the Euro in the region of 0.6345 and is trading against the US Dollar in the region of 0.8285

Canadian Dollar

After sliding against the US dollar for the past two days the Canadian dollar finally bucked the trend and traded close to a 13-month high. However analysts are warning that a soft economy is being indicated by the country’s falling manufacturing sales, record trade deficit and slipping housing market. Some analysts are predicting that investor’s perceptions of the Canadian dollar as a safe haven currency will soon be revised.

The Canadian Dollar is presently trading against the Pound in the region of 0.6316, is trading against the Euro in the region of 0.7864 and is trading against the US Dollar in the region of 1.0273

 

Laura Barrett
This post was written by
Laura moved from the US to the UK several years ago. As a corporate sales executive for a leading foreign exchange company, Laura has expert knowledge of currency movements and market trends and is able to offer specialist guidance regarding making a trade at the most lucrative time and protecting transactions from currency risk.