24th June 2014

Pound Stays Strong Against Weakened US Dollar whilst Chinese Data Boosts ‘Kiwi’ and ‘Aussie’


Pound Sterling

Euro to Pound

The Pound is set to rally further after reaching a five-year high against the US Dollar. Although the last Bank of England meeting minutes confirmed that the UK economy is still not ready to raise interest rates, the Pound has triumphed against the weak ‘Buck’ and is currently holding in the $1.70 region.

Euro

The Euro has seen a slump after the ECB announced cuts earlier this month; however, it has been able to steadily gain against the US Dollar as the ‘Greenback’ fell recently.

Although Monday has seen unfavourable results published for the Eurozone and some faltering in the Euro, it is hoped that by the end of the working week other domestic statistics could boost optimism in the Single Currency.

US Dollar

The ‘Greenback’ has seen a softening against all major currencies recently after the Federal Reserve revealed that interest rates would stay low with no rise on the horizon for some time. With a cutback on their quantitative easing programme in place, the ‘Buck’ may stay weak in the short term but enjoy strength in the long term.

Canadian Dollar

The Canadian Dollar closed on a high last week as the US Dollar fell 0.60% against the ‘Loonie’. The ‘Loonie’ has enjoyed a positive start to the week as a result of Friday’s excellent Retail Sales data and high inflation statistics.

Australian Dollar

The ‘Aussie’ has benefited from above-forecast Chinese manufacturing data. The ‘Aussie’ as a commodity currency had been predicted to slump in the near term due to speculation of less trade with China and the Iraq conflict.

However, strong Chinese data has given the Australian Dollar a boost and helped it compete with other major currencies.

New Zealand Dollar

New Zealand exports its highest volume of products to China. Consequently, the New Zealand-China bond has enhanced the ‘Kiwi’ in the wake of positive Chinese statistics.

The ‘Kiwi’ has been boosted by the prospect of growth and expansion in China, with New Zealand expected to be rated as one of the fastest developed economies this year.


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