US Dollar Drops as US Government Shuts Down

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Pound Sterling

Yesterday’s surprisingly strong UK housing data helped the Pound consolidate and extend gains against its peers during European trading. The British asset continues to enjoy bullish relationships with the US Dollar and Euro ahead of the release of UK manufacturing PMI. If the gauge rises to 57.5, as expected by economists, Sterling could strengthen further.

GBP/EUR is trading in the region of 1.1973 and GBP/USD is trading in the region of 1.6255

US Dollar

The failure of the US government to reach an agreement regarding the nation’s budget, and the resulting federal shutdown, saw the US Dollar slump overnight. Notably, the ‘Greenback’ hit a nine-month low against the Pound ahead of the release of US ISM manufacturing figures. US news is likely to continue inspiring market volatility in the hours and days ahead.

USD/GBP is trading in the region of 0.6154 and USD/EUR is trading in the region of 0.7384

Euro

Prior to the publication of German unemployment and Eurozone manufacturing data, the common currency was modestly stronger against the US Dollar and recovered some ground against its British counterpart. Economists have forecast that German unemployment held at 6.8 per cent while the gauge of Eurozone manufacturing was unchanged at 51.1 this month.

EUR/GBP is trading in the region of 0.8352 and EUR/USD is trading in the region of 1.3572

Australian Dollar

Although China’s manufacturing PMI came in at 51.1 rather than the 51.6 forecast, the ‘Aussie’ rallied against its rivals during Australasian trading. The South Pacific asset was boosted by better-than-forecast domestic retail sales figures and the Reserve Bank of Australia’s decision to refrain from issuing an additional rate cut.

AUD/GBP is trading in the region of 0.5794, AUD/EUR is trading in the region of 0.6933 and AUD/USD is trading in the region of 0.9385

New Zealand Dollar

A second disappointing manufacturing report for China weighed on New Zealand’s trade prospects overnight and the ‘Kiwi’ consequently softened against rivals like the Pound and US Dollar. The New Zealand Dollar also lost ground against a broadly strengthening ‘Aussie’ and was little changed as the European session opened.

NZD/GBP is trading in the region of 0.5124, NZD/EUR is trading in the region of 0.6134 and NZD/USD is trading in the region of 0.8332

Canadian Dollar

Better-than-forecast Canadian GDP data helped the ‘Loonie’ advance on several of its most traded peers during North American trading. Although the commodity-driven asset later shed gains against the Pound, it consolidated its advance against the ‘Greenback’ after the Federal shutdown kicked off.
CAD/GBP is trading in the region of 0.5982, CAD/EUR is trading in the region of 0.7161 and CAD/USD is trading in the region of 0.9722

These exchange rates were correct as of 09:00 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.