28th January 2014

Pound Supported by UK GDP


Pound Sterling

Euro to Pound

Sterling consolidated gains against several of its main currency rivals and hit a 2 ½ year high against the US Dollar as UK GDP data confirmed that the British economy expanded by 0.7 per cent in the fourth quarter of the year.

The news that the UK economy enjoyed its best year of growth since 2007 is likely to continue supporting the Pound in the days ahead.

GBP/EUR is trading in the region of 1.2140 and GBP/USD is trading in the region of 1.6548em>

US Dollar

Ahead of the highly anticipated policy announcement from the Federal Open Market Committee, the US Dollar posted modest gains against several of its currency counterparts. The ‘Greenback’ was boosted by the expectation that the Fed will opt to taper stimulus by 10 billion Dollars, but if today’s US consumer confidence data falls short of estimates the currency could fluctuate.

USD/GBP is trading in the region of 0.6041 and USD/EUR is trading in the region of 0.7334

Euro

The Euro put in a pretty patchy performance against several of its major currency rivals this morning as German producer prices unexpectedly stagnated in December. However, if tomorrow’s consumer confidence report for the Eurozone’s largest economy shows an improvement in sentiment the Euro could recover losses.

EUR/GBP is trading in the region of 0.8237 and EUR/USD is trading in the region of 1.3637

Australian Dollar

Overnight the ‘Aussie’ staged a modest rebound, moving away from recent lows against peers like the US Dollar, as concerns regarding an RBA rate cut faded slightly following the release of upbeat Australian business conditions and confidence figures.

AUD/GBP is trading in the region of 0.5313, AUD/EUR is trading in the region of 0.6441 and AUD/USD is trading in the region of 0.8795

New Zealand Dollar

The ‘Kiwi’ closed Australasian trading slightly stronger against its US peer in spite of a lack of notable economic news for New Zealand. If the Reserve Bank of New Zealand hints at a possible near-term rate increase when it meets later this week the South Pacific currency could rally.

NZD/GBP is trading in the region of 0.4988, NZD/EUR is trading in the region of 0.6073 and NZD/USD is trading in the region of 0.8278

Canadian Dollar

Yesterday the ‘Loonie’ hit its lowest level against the US Dollar since mid-2009, closing the North American session at 89.96 US cents. While a calming in emerging markets has since helped the Canadian Dollar recover losses, it continues to struggle against a bullish Pound.

CAD/GBP is trading in the region of 0.5423, CAD/EUR is trading in the region of 0.6595 and CAD/USD is trading in the region of 0.8992

These exchange rates were correct as of 9:40 am


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