27th January 2014

Aussie moves away from 3 ½ year low


Pound Sterling

Euro to Pound

If tomorrow’s UK GDP report surprises to the upside the Pound could enjoy another bullish week.

As it stands, the Pound is slightly stronger against the US Dollar but has edged lower against a supported Euro.

GBP/EUR is trading in the region of 1.2059 and GBP/USD is trading in the region of 1.6516

US Dollar

Today’s US new home sales report could help the US Dollar recover losses against the Euro and Pound. As the Federal Reserve is due to gather later this week, any data supporting the case for the further tapering of stimulus could boost the ‘Buck’ in the days ahead.

USD/GBP is trading in the region of 0.6055 and USD/EUR is trading in the region of 0.7301

Euro

Better-than-forecast sentiment data for Germany gave the Euro a boost as another week of trading began. The common currency rallied against several of its main rivals but could reverse gains if this week’s German employment and inflation figures fail to meet estimates.

EUR/GBP is trading in the region of 0.8293 and EUR/USD is trading in the region of 1.3698

Australian Dollar

A public holiday kept ‘Aussie’ movement restrained overnight, although the South Pacific asset was able to ease away from a three-and-a-half year low against the US Dollar. If today’s Australian conference board leading index shows improvement the Down-under Dollar could advance.

AUD/GBP is trading in the region of 0.5275, AUD/EUR is trading in the region of 0.6360 and AUD/USD is trading in the region of 0.8716

New Zealand Dollar

In spite of the release of an encouraging performance of services report for New Zealand the ‘Kiwi’ was trading in a tight range against the Pound and was little-changed against the US Dollar. However, if the Reserve Bank of New Zealand hints at the possibility of interest rate increases when it meets later this week the appeal of the South Pacific currency could rise.

NZD/GBP is trading in the region of 0.4988, NZD/EUR is trading in the region of 0.6015 and NZD/USD is trading in the region of 0.8227

Canadian Dollar

After plummeting beyond 90 cents per Dollar on Friday as investors digested Canada’s inflation report the ‘Loonie’ was little changed following the weekend. With Canadian economic data in short supply until the end of the week, Canadian Dollar movement may be limited.

CAD/GBP is trading in the region of 0.5475, CAD/EUR is trading in the region of 0.6602 and CAD/USD is trading in the region of 0.9043


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