The Pound experienced a drop yesterday which took it close to a four-week low against the US Dollar. Economists have commented that Sterling could experience further vulnerability as worries regarding the UK economy and expectations of Bank of England monetary easing mount. Several pieces of key UK data are due for release over the coming days including today’s PPI and CPI figures. If they come in lower-than-expected it will quash hopes for third quarter economic recovery and deter investors further.
The Pound is presently trading against the Euro in the region of 1.2377 and is trading against the US Dollar in the region of 1.6084
After US economic data came in above expectations the US Dollar was boosted. Despite the recent trend of positive US data leading to ‘Greenback’ losses the better-than-forecast retail sales report helped the US Dollar advance against the majority of its peers. The American currency’s gains were aided as investors were turned off risk due to continuing Eurozone uncertainty and a weakening outlook for the UK economy. Several important US figures are due for release today, including Industrial Output. If these also come in above expectations the ‘Greenback’ could either continue its bullish trend or post losses due to bolstered risk-sentiment.
The US Dollar is presently trading against the Pound in the region of 0.6209 and is trading against the Euro in the region of 0.7689
The Euro has risen against the US Dollar by almost 1 per cent this week and could continue this trend if appetite for riskier assets is strengthened by positive US data releases and the result of the crisis-tackling gathering of European leaders. Investors will be looking out for Eurozone Trade Balance and final HICP figures and the results of Germany’s ZEW Economic Sentiment Index for October.
The Euro is presently trading against the Pound in the region of 0.8074 and is trading against the US Dollar in the region of 1.3003
Despite minutes of the Reserve Bank of Australia’s meeting revealing officials comments regarding the potential of slashing borrowing costs further the ‘Aussie’ managed to cling to the 0.2 per cent gain against the US Dollar made yesterday. Advancing Asian stocks and improved demand for higher-yielding assets supported the Australian currency and helped it advance 0.5 per cent against the Japanese Yen. With no significant Australian data on the cards in the days ahead any volatility in the ‘Aussie’ will likely result from developments in Asia and Europe.
The Australian Dollar is presently trading against the Pound in the region of 0.6382, is trading against the Euro in the region of 0.7903 and is trading against the US Dollar in the region of 1.0273
New Zealand Dollar
Following the release of data which revealed that inflation in New Zealand declined to its weakest pace for more than a dozen years the ‘Kiwi’ lost ground against all of its main currency rivals. The statistics office reported that consumer prices in New Zealand jumped up by 0.8 per cent in the third quarter from the same period of 2011, the lowest level achieved since the close of 1999. After the announcement speculation that the South Pacific nation’s Reserve Bank will be forced to cut interest rates was boosted and the New Zealand Dollar fell by 0.3 per cent against its US counterpart.
The New Zealand Dollar is presently trading against the Pound in the region of 0.5078, is trading against the Euro in the region of 0.6293 and is trading against the US Dollar in the region of 0.8162
The recent gains made by the Canadian Dollar were wiped out after Bank of Canada Governor Mark Carney heightened speculation that he won’t be increasing interest rates in the short term. The ‘Loonie’ recorded gains after Canadian existing home sales were shown to have risen 2.5 per cent in September but the advance was short lived. The Canadian currency fell against its major competitors after Carney revealed his plans to alter the nation’s economic forecast to take into account the ‘impact of the uncertainty’ and reflect the slowing global economic recovery.
The Canadian Dollar is presently trading against the Pound in the region of 0.6328, is trading against the Euro in the region of 0.7843 and is trading against the US Dollar in the region of 1.0194