21st January 2014

Euro Gains, Aussie Trims Advance, Pound Steadies

Pound Sterling

Dollar currency news

Over the course of trade on Wednesday the Pound posted widespread gains as the UK unemployment rate fell unexpectedly.

However, the British asset edged away from its one-year high against the Euro as the common currency was boosted by its own domestic developments and investors awaited the release of UK CBI reported sales data.

GBP/EUR is trading in the region of 1.2190 and GBP/USD is trading in the region of 1.6612

US Dollar

During the North American session the ‘Buck’ continued trading in a fairly narrow range against several of its major rivals. The US Dollar weakened against a bullish Pound yesterday and lost ground against the Euro following this morning’s PMI reports but could recover losses if US initial jobless claims and Markit PMI data add to the case for the Federal Reserve tapering stimulus.

USD/GBP is trading in the region of 0.6022 and USD/EUR is trading in the region of 0.7381


During European trading the Euro surged against its rivals as manufacturing/services PMI reports for Germany, France and the Eurozone exceeded expectations – indicating that the currency bloc’s tentative recovery stepped up a gear as 2014 began. Further Euro movement could occur following the release of the Eurozone’s consumer confidence report.

EUR/GBP is trading in the region of 0.8204 and EUR/USD is trading in the region of 1.3625

Australian Dollar

The ‘Aussie’ shed recent gains overnight as China’s HSBC/Markit PMI fell below the 50 mark separating growth from contraction and dented Australia’s economic outlook. However, while the Australian Dollar declined against peers like the ‘Greenback’ and Pound, the commodity-driven currency continues to derive underlying support from the decreasing odds of an RBA rate cut.

AUD/GBP is trading in the region of 0.5298, AUD/EUR is trading in the region of 0.6452 and AUD/USD is trading in the region of 0.8796

New Zealand Dollar

An impressive jump in New Zealand’s consumer confidence measure did little to support the ‘Kiwi’ overnight and it continued to trade lower against its US counterpart. The South Pacific currency had previously fluctuated as a domestic performance of manufacturing index slipped from a positively revised 57.0 to 56.4 in December.

NZD/GBP is trading in the region of 0.5004, NZD/EUR is trading in the region of 0.6118 and NZD/USD is trading in the region of 0.8300

Canadian Dollar

The Bank of Canada’s decision to leave rates unaltered and advocate a weaker domestic currency pushed the ‘Loonie’ to a fresh four-year low against the US Dollar yesterday. The Canadian Dollar was also trading lower against the Pound and Euro ahead of today’s Canadian retail sales figures.

CAD/GBP is trading in the region of 0.5400, CAD/EUR is trading in the region of 0.6579 and CAD/USD is trading in the region of 0.8967

These exchange rates were correct as of 9:25 am

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