USD/EUR Close to Eight-Month Low on Fed Speculation


Pound Sterling

Ahead of the release of a UK public finance report the Pound was holding steady against the US Dollar and Euro. As the data is expected to show that the UK’s budget deficit narrowed in September, year-on-year, Sterling could strengthen against its peers as the day progresses.

GBP/EUR is trading in the region of 1.1793 and GBP/USD is trading in the region of 1.6129

US Dollar

With economists forecasting that today’s US employment report will reveal that the nation’s unemployment rate stayed above the Federal Reserve’s target in September (further reducing the likelihood of the Fed tapering stimulus before next year) the ‘Greenback’ softened against peers like the Euro and Yen. However, if the non-farm payrolls figure surprises to the upside the US Dollar could recoup losses during the North American session.

USD/GBP is trading in the region of 0.6200 and USD/EUR is trading in the region of 0.7310


As European trading began the Euro was close to an eight-month high against the US Dollar and little changed against the Pound. With Eurozone news thin on the ground today investors will be looking ahead to tomorrow’s consumer confidence index and Thursday’s services/manufacturing PMI figures.

EUR/GBP is trading in the region of 0.8477 and EUR/USD is trading in the region of 1.3676

Australian Dollar

With the production forecast for a major Australian export being raised, the ‘Aussie’ was pushed to an almost four-month high against its US counterpart. BHP Billiton Ltd increased its estimate for total iron ore output by 5 million tonnes and the Australian Dollar consequently strengthened against several of its main rivals.

AUD/GBP is trading in the region of 0.5990, AUD/EUR is trading in the region of 0.7065 and AUD/USD is trading in the region of 0.9659

New Zealand Dollar

As investors developed an appetite for higher-risk assets prior to the release of the US non-farm payrolls report the ‘Kiwi’ rallied against several of its most traded peers. Although economic data for New Zealand is a little lacking this week, with influential US and Chinese reports on the cards ‘Kiwi’ fluctuations can be expected.

NZD/GBP is trading in the region of 0.5241, NZD/EUR is trading in the region of 0.6179 and NZD/USD is trading in the region of 0.8452

Canadian Dollar

While a strong domestic wholesale sales report supported the ‘Loonie’ yesterday, the commodity-driven asset shed gains on speculation that the Bank of Canada will opt to trim its economic forecasts when it meets this week. The Canadian Dollar was also feeling the pressure ahead of today’s retail sales report. Economists have forecast that the pace of sales declined in August.

CAD/GBP is trading in the region of 0.6023, CAD/EUR is trading in the region of 0.7104 and CAD/USD is trading in the region of 0.9713

These exchange rates were correct as of 9:20 am

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.