17th February 2014

GBP Performing Strongly as UK Outlook Brightens


Pound Sterling

USD exchange rate

The Pound began the week on a high as a strong gain in UK house prices boosted the currency.

Although Sterling has edged away from its recent four-year high against the US Dollar it largely retained its advance against the Euro.

GBP/EUR is trading in the region of 1.2208 and GBP/USD is trading in the region of 1.6732

US Dollar

Last week’s surprisingly poor industrial/manufacturing output reports for the US weighed heavily on the ‘Greenback’ and pushed the currency lower against several of its most traded rivals. With US markets closed for a national holiday further US Dollar movement will be limited.

USD/GBP is trading in the region of 0.5978 and USD/EUR is trading in the region of 0.7297

Euro

The news that the Eurozone’s economy expanded by more-than-forecast in the final quarter of last year left the Euro performing strongly against its US counterpart. The common currency began the week a little softer against a bullish Pound but largely unchanged against the ‘Greenback’ ahead of tomorrow’s ZEW economic sentiment surveys.

EUR/GBP is trading in the region of 0.8192 and EUR/USD is trading in the region of 1.3704

Australian Dollar

Over the weekend the ‘Aussie’ was supported by the news that new credit in China hit a record high in January. The commodity-driven currency could extend gains overnight if the tone of the minutes from the latest Reserve Bank of Australia meeting is as hawkish as the nation’s policy statement.

AUD/GBP is trading in the region of 0.5399, AUD/EUR is trading in the region of 0.6586 and AUD/USD is trading in the region of 0.9034

New Zealand Dollar

Although a report showing a smaller-than-forecast gain in retail sales in New Zealand saw the ‘Kiwi’ extend declines against the Pound, developments in China helped the South Pacific asset advance on several of its other rivals.

NZD/GBP is trading in the region of 0.4995, NZD/EUR is trading in the region of 0.6103 and NZD/USD is trading in the region of 0.8361

Canadian Dollar

On Friday a surprising decline in Canada’s manufacturing/existing home sales piled pressure on the ‘Loonie’ and caused the currency to dip against the Pound and Euro. However, the Canadian Dollar did strengthen against its US counterpart as manufacturing/industrial production in the world’s largest economy fell.

CAD/GBP is trading in the region of 0.5451, CAD/EUR is trading in the region of 0.6654 and CAD/USD is trading in the region of 0.9119

These exchange rates were correct as of 12:20 GMT


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