19th March 2014

GBP Buoyed by BoE, AUD Weaker, USD Supported before FOMC


Pound Sterling

Australian dollar exchange rate

As the Bank of England intimated that the UK’s economic recovery will continue in its latest meeting minutes the Pound rallied against its rivals.

Further Sterling gains occurred as the European session progressed.

GBP/EUR is trading in the region of 1.1946 and GBP/USD is trading in the region of 1.6621

US Dollar

As the Federal Open Market Committee announcement drew closer the US Dollar broadly strengthened. It is expected that the central bank will reassert its commitment to keeping borrowing costs low while trimming bond purchases by another 5 billion Dollars.

USD/GBP is trading in the region of 0.6013 and USD/EUR is trading in the region of 0.7183

Euro

The Euro weakened against a bullish Pound and slipped against the US Dollar during European trading. If the Federal Open Market Committee announces the further tapering of stimulus later today the Euro could extend declines against the ‘Greenback’.

EUR/GBP is trading in the region of 0.8371 and EUR/USD is trading in the region of 1.3917

Australian Dollar

The collapse of a prominent Chinese property developer pushed the Yuan to an almost 11 month low and caused the ‘Aussie’ to slump against almost all of its rivals. The AUD/USD pairing moved away from a three-month high.

AUD/GBP is trading in the region of 0.5476, AUD/EUR is trading in the region of 0.6539 and AUD/USD is trading in the region of 0.9101

New Zealand Dollar

With investors focusing on today’s New Zealand growth report the ‘Kiwi’ was little-changed against several of its peers at the close of local trading. If the nation’s economy is shown to have expanded by more-than-forecast the New Zealand Dollar could rally.

NZD/GBP is trading in the region of 0.5185, NZD/EUR is trading in the region of 0.6190 and NZD/USD is trading in the region of 0.8613

Canadian Dollar

Yesterday the Governor of the Bank of Canada warned of slowing domestic growth and the Canadian Dollar consequently fell against the majority of its currency counterparts. The ‘Loonie’ remains lower today and may continue trading in a fairly narrow range until the FOMC announcement.

CAD/GBP is trading in the region of 0.5377, CAD/EUR is trading in the region of 0.6424 and CAD/USD is trading in the region of 0.8949

These exchange rates were correct as of 14:30 GMT


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