The Pound advanced for a second consecutive day against the Euro after Bank of England Governor Mark Carney failed to convince investors that the Central Bank will maintain interest rates at the current record low during his speech to business leaders yesterday. The currency also found some support as the feared military action against Syria was delayed after the British government announced that they would wait for United Nations weapons inspectors to deliver their report on an alleged chemical attack.
GBP/EUR is trading in the region of 1.1694 and GBP/USD is trading in the region of 1.5506
The ‘Greenback’ remains higher against the Euro as investors await the release of data which is expected to show that the US economy grew at a faster-than-expected rate, adding to the case for the Federal Reserve to taper its stimulus programme. Figures due to be released by the US Commerce department are expected to show that GDP expanded by 2.2%, beating estimates of a 1.7% rise.
USD/GBP is trading in the region of 0.6448 and USD/EUR is trading in the region of 0.7541
The Euro is trading weaker against both the Pound and US Dollar as the possibility of military action in Syria weighs upon the currency. Soft sentiment data releases from the Eurozone also weighed upon the currency. The latest unemployment data out of Germany could offer some support to the currency.
EUR/GBP is trading in the region of 0.8551 and EUR/USD is trading in the region of 1.3259
The ‘Aussie’ made gains against the US Dollar due to the release of positive data. The Australian Bureau of Statistics said that investment into the country increased by 4% in the second quarter. The figure beat expectations of a 1% increase. The gains were limited however as uncertainty over whether a western led military strike against Syria will occur weighed upon sentiment.
AUD/GBP is trading in the region of 0.5771, AUD/EUR is trading in the region of 0.6749 and AUD/USD is trading in the region of 0.8949
New Zealand Dollar
The ‘Kiwi’ is slightly higher against the US Dollar but gains were limited due to the release of disappointing business confidence data and as the Syria situation continues to spook the markets. Data showed that business confidence in New Zealand fell to 48.1 in August, down from the previous reading of 52.8.
NZD/GBP is trading in the region of 0.5027, NZD/EUR is trading in the region of 0.5878 and NZD/USD is trading in the region of 0.7795
The ‘Loonie’ weakened against its US relation as speculation over military action against Syria outweighed the gains made from higher oil prices. Friday sees the release of the latest GDP data for the country, if it comes in as expected and shows a contraction of the economy the ‘Loonie’ will fall further against the
US Dollar due to concerns of divergence between the two North American nations.
CAD/GBP is trading in the region of 0.6139, CAD/EUR is trading in the region of 0.7180 and CAD/USD is trading in the region of 0.9521