US Dollar surges on Fed speculation

money_united_states_dollars_macro

Pound Sterling

The Pound has weakened against the US Dollar due to increasing speculation that the US Federal Reserve is coming closer to deciding to end its monetary stimulus program. Sterling approached its lowest level in six-weeks as the speculation boosted the US currency.

GBP/EUR is trading in the region of 1.1835 and GBP/USD is trading in the region of 1.5243

US Dollar

The ‘Greenback’ has risen to a six-week high against the Euro as economists expect the Federal Reserve’s policy makers to announce that they will be altering the pace of their monthly bond purchases . A Federal Bank president said that the Bank may start to begin tapering off bond purchases as early as this summer.  The currency’s rise may be temporary however as yesterday’s weak jobs data could weigh on sentiment throughout the session.

USD/GBP is trading in the region of 0.6560 and USD/EUR is trading in the region of 0.7764

Euro

The Euro weakened against the US Dollar due to a combination of continuing weak data out of the Eurozone and rising speculation that the US Federal Reserve could announce that it would slowing the rate of its bond purchases. The Eurozone economy has slipped deeper into recession following the release of GDP data that showed that the troubled region contracted by 0.2% in the first quarter of 2013.

EUR/GBP is trading in the region of 0.8449 and EUR/USD is trading in the region of 1.2879

Australian Dollar

The ‘Aussie’ has fallen to an 11-month low against its US relation as traders warmed to the idea that the US Federal Reserve is considering the steady removal of its economic stimulus program.  The shift in sentiment about QE comes as concerns grow that the Australian economy is set to slow as mining investment cools.

AUD/GBP is trading in the region of 0.6394, AUD/EUR is trading in the region of 0.7567 and AUD/USD is trading in the region of 0.9746

New Zealand Dollar

The ‘Kiwi’ tumbled to its lowest level in a year against the US Dollar due to the expectation that the US Federal Reserve will announce a slowdown to its bond-buying programme. The New Zealand Dollar could make a rebound later in today’s session following on from yesterdays weak jobs data from the US.

NZD/GBP is trading in the region of 0.5326, NZD/EUR is trading in the region of 0.6304 and NZD/USD is trading in the region of 0.8119

Canadian Dollar

The ‘Loonie’ came close to a three-week low against its US relation, declining for a fifth time in six days as a regional Federal Reserve president said the Central Bank may begin slowing its monthly bond-buying as the labour market strengthens.

CAD/GBP is trading in the region of 0.6412, CAD/EUR is trading in the region of 0.7590 and CAD/USD is trading in the region of 0.9775

These exchange rates were correct as of 09:10am GMT

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.