2nd June 2014

Pound/Euro Stronger, Euro/US Dollar at 3-month Low


Pound Sterling

Euro to Pound

Although the UK’s manufacturing PMI slipped slightly in May, the measure remained above the 50 mark separating growth from contraction and today’s report detailed a strong increase in new orders. Consequently the Pound held gains against the Euro and was trading in a narrow range against the US Dollar.

GBP/EUR is trading in the region of 1.2315 and GBP/USD is trading in the region of 1.6747

US Dollar

If today’s US manufacturing report shows the improvement expected the ‘Greenback’ could strengthen against its currency counterparts. A reading of 55.5 is forecast. This would be up from 54.9 in April and the strongest reading for the year so far.

USD/GBP is trading in the region of 0.5971 and USD/EUR is trading in the region of 0.7352

Euro

A slightly disappointing manufacturing report for the Eurozone added to the case for the European Central Bank introducing additional stimulus this week and kept the Euro trending lower on Monday.

EUR/GBP is trading in the region of 0.8120 and EUR/USD is trading in the region of 1.3602

Australian Dollar

A drop in Australian building approvals counteracted the impact of a surprisingly strong Chinese manufacturing report and left the ‘Aussie’ in a weaker position against the majority of its currency counterparts.

AUD/GBP is trading in the region of 0.5529, AUD/EUR is trading in the region of 0.6803 and AUD/USD is trading in the region of 0.9259

New Zealand Dollar

Although economic reports for New Zealand were limited overnight, the ‘Kiwi’ felt the effects of Australia’s disappointing data and the commodity-driven currency softened before the close of local trading.

NZD/GBP is trading in the region of 0.5052, NZD/EUR is trading in the region of 0.6223 and NZD/USD is trading in the region of 0.8466

Canadian Dollar

After shedding half a cent against the Pound on Friday, the ‘Loonie’ remained weaker on Monday. The Canadian Dollar came under pressure at the close of last week after domestic growth figures fell short of expectations.

CAD/GBP is trading in the region of 0.5500, CAD/EUR is trading in the region of 0.6773 and CAD/USD is trading in the region of 0.9212

These exchange rates were correct as of 11:55 GMT


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