16th April 2014

China’s GDP Data Helps AUD Trim Declines


Pound Sterling

Euro to Pound

After a comparatively quiet trading session on Tuesday the Pound could be in for considerable movement today as UK employment figures are published. If the nation’s unemployment rate declined to 7.1 per cent, as expected, Sterling could rally. However, a disappointing result would add to the case for the Bank of England leaving stimulus unaltered and may push the Pound lower.

GBP/EUR is trading in the region of 1.2100 and GBP/USD is trading in the region of 1.6741

US Dollar

Although China’s slightly better-than-forecast growth data saw investors turn to higher-yielding assets, the safe-haven US Dollar remained stronger against the majority of its peers. This week’s positive US retail sales and inflation figures are supporting the ‘Greenback’, as are ongoing concerns regarding the situation in Ukraine.

USD/GBP is trading in the region of 0.5973 and USD/EUR is trading in the region of 0.7226

Euro

Today’s Eurozone inflation figures will be largely responsible for the direction taken by the Euro over the next few days. If the report shows a slowing in consumer price gains the common currency may well soften against its British and US counterparts.

EUR/GBP is trading in the region of 0.8265 and EUR/USD is trading in the region of 1.3827

Australian Dollar

Local data might have been disappointing (with Australia’s Westpac Leading Index showing stagnation) but the fact that Chinese growth slowed by less-than-expected in the first quarter of 2014 helped the Australian Dollar trim losses.

AUD/GBP is trading in the region of 0.5586, AUD/EUR is trading in the region of 0.6777 and AUD/USD is trading in the region of 0.9351

New Zealand Dollar

The news that the price of dairy, a major New Zealand export, dropped caused ‘Kiwi’ losses overnight. The South Pacific asset also softened as New Zealand’s consumer price index showed that inflation slowed unexpectedly.

NZD/GBP is trading in the region of 0.5137, NZD/EUR is trading in the region of 0.6213 and NZD/USD is trading in the region of 0.8583

Canadian Dollar

The Canadian Dollar was trading in a fairly narrow range yesterday and was little affected by positive local manufacturing shipments figures. However, today’s Bank of Canada rate decision could have a far more dramatic impact on the asset.

CAD/GBP is trading in the region of 0.5440, CAD/EUR is trading in the region of 0.6580 and CAD/USD is trading in the region of 0.9107

These exchange rates were correct as of 09:15 GMT


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