US in the Spotlight as Default Deadline Approaches

money_united_states_dollars_macro

Pound Sterling

While the Pound was little changed against the US Dollar this morning ahead of the publication of influential UK employment figures, the British asset was slightly stronger against the Euro. Investors were also looking to today’s Eurozone inflation report and hoping for an announcement from the US.

GBP/EUR is trading in the region of 1.1832 and GBP/USD is trading in the region of 1.5996

US Dollar

Although US lawmakers are continuing budget talks, they have yet to reach an agreement which would see the world’s largest economy avoid a potentially disastrous default. Consequently, the US Dollar put in a mixed performance overnight, gaining on the Yen but losing ground against Sterling. While debt ceiling concerns are of paramount importance, the publication of the Fed’s Beige Book, at 19:00 GMT, could also affect the ‘Greenback’.

USD/GBP is trading in the region of 0.6253 and USD/EUR is trading in the region of 0.7396

Euro

With Eurozone inflation figures and UK employment data on the cards for today the Euro is likely to experience notable movement in the hours ahead. However, US developments will remain in focus – particularly given the fact that US lawmakers are running out of time if they hope to reach an agreement before the October 17th deadline.

EUR/GBP is trading in the region of 0.8452 and EUR/USD is trading in the region of 1.3520

Australian Dollar

After rallying against its peers yesterday in the wake of the release of minutes from the latest Reserve Bank of Australia policy meeting the ‘Aussie’ retained its advance during Australasian trading. The Australian Dollar was little affected as data showed that the nation’s Westpac Leading Index declined by 0.1 per cent in August.

AUD/GBP is trading in the region of 0.5960, AUD/EUR is trading in the region of 0.7053 and AUD/USD is trading in the region of 0.9535

New Zealand Dollar

With data showing that New Zealand’s inflation rate accelerated at the most rapid pace for two-years, the odds of the Reserve Bank of New Zealand increasing borrowing costs rose and the ‘Kiwi’ rallied. The South Pacific asset hit a one-month high against its US counterpart and broadly strengthened against its other most traded rivals.

NZD/GBP is trading in the region of 0.5255, NZD/EUR is trading in the region of 0.6223 and NZD/USD is trading in the region of 0.8406

Canadian Dollar

After hitting a one-week high against the ‘Buck’ during the local session the Canadian Dollar declined as the political stalemate in the US continued and indicators showed that the commodity-driven asset was overvalued by 10 per cent. Although Canadian manufacturing shipments data is due for release at 13:30 GMT, US news will be more influential to the ‘Loonie’s movement.

CAD/GBP is trading in the region of 0.6028, CAD/EUR is trading in the region of 0.7133 and CAD/USD is trading in the region of 0.9641

These exchange rates were correct as of 09:30 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.