US Dollar trading higher

Pound Sterling

Yesterday Eurozone officials indicated that the next instalment of Greek aid could soon be released and the decreased uncertainty triggered a rise in the Pound. Sterling recorded particular gains against safe-haven rival the US Dollar, advancing 0.2 per cent and moving further away from the eight-week low of last week. Today a lack of UK economic news means that investors will be focusing on developments in Europe.

The Pound is presently trading against the Euro in the region of 1.2422 and is trading against the US Dollar in the region of 1.5916

US Dollar

Risk taking was on the up yesterday after the likelihood of avoiding the fiscal cliff increased, leading to the US Dollar posting declines against several of its main peers. The American currency was also pushed lower as the Greek bailout situation became more positive, notably dropping against its Canadian counterpart. Of interest today are the US Housing Starts figures and Federal Reserve Chairman Ben Bernanke’s speech at the economic club.

The US Dollar is presently trading against the Pound in the region of 0.6285 and is trading against the Euro in the region of 0.7812

Euro

The Euro was able to benefit yesterday from a more optimistic outlook for Greece. Signs that a bailout could soon be released to the struggling nation helped the common currency gain on several of its most traded counterparts, particularly the British Pound. Euro movement is likely to result from Moody’s decision to cut France’s credit rating and if an official announcement concerning Greek aid is made today significant volatility could be on the cards.

The Euro is presently trading against the Pound in the region of 0.8047 and is trading against the US Dollar in the region of 1.280

Australian Dollar

The ‘Aussie’ was able to hold on to gains made yesterday after France, the second largest economy in the Eurozone, had its top credit grade slashed by Moody’s Investors Service. With France downgraded Australia remains one of only seven sovereign borrowers with a top rating from all three main ratings agencies. Despite minutes from the Reserve Bank of Australia’s latest policy meeting indicating that further interest rate reductions could be appropriate the Australian Dollar was even able to shake off three days of losses against its New Zealand counterpart.

The Australian Dollar is presently trading against the Pound in the region of 0.6537, is trading against the Euro in the region of 0.8132 and is trading against the US Dollar in the region of 1.0399

New Zealand Dollar

As resolution regarding the Greek aid situation came closer the New Zealand Dollar was able to maintain the levels achieved yesterday. The ‘Kiwi’ held gains made against the Euro, US Dollar and British Pound. Today fluctuations in the South Pacific currency could result from Eurozone developments.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5143, is trading against the Euro in the region of 0.6373 and is trading against the US Dollar in the region of 0.8168

Canadian Dollar

After the International Monetary Fund intimated that it is contemplating classifying the Australian and Candian Dollars as reserve currencies the ‘Loonie’ recorded its most significant advances against its US rival for a month. Gaining commodities and global stocks also contributed to the Canadian Dollar’s 0.5 per cent rise against the US Dollar. The only Canadian data of interested scheduled for release today is the nation’s month-on-month Wholesale Sales, but the figures are not expected to trigger much movement.

The Canadian Dollar is presently trading against the Pound in the region of 0.6308, is trading against the Euro in the region of 0.7846 and is trading against the US Dollar in the region of 1.0029

 

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.