13th February 2014

Sterling Broadly Strengthens after BoE


Pound Sterling

Euro to Pound

Sterling surged against its peers over the course of European trading as the Bank of England published its quarterly inflation report.

As well as positively revising UK growth forecasts, the BoE pledged to hold interest rates at record lows for the foreseeable future.

GBP/EUR is trading in the region of 1.2171 and GBP/USD is trading in the region of 1.6532

US Dollar

The US Dollar was feeling the pressure ahead of Thursday and the release of US advance retail sales figures. While the ‘Greenback’ was supported by Fed Chairman Janet Yellen’s pledge to continue with the tapering of stimulus, the expectation that sales stagnated in January limited US Dollar gains.

USD/GBP is trading in the region of 0.6049 and USD/EUR is trading in the region of 0.7362

Euro

An unexpectedly steep decline in industrial production in the Eurozone left the Euro struggling against its major rivals. The common currency slipped against the Pound and US Dollar but could recover losses if tomorrow’s German inflation figures are positive.

EUR/GBP is trading in the region of 0.8219 and EUR/USD is trading in the region of 1.3584

Australian Dollar

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Early into local trading the ‘Aussie’ softened as Australian consumer confidence dipped. However, impressive trade data from China later boosted the South Pacific currency and the Australian Dollar closed the Australasian session in a stronger position against its major rivals.

AUD/GBP is trading in the region of 0.5470, AUD/EUR is trading in the region of 0.6624 and AUD/USD is trading in the region of 0.9043

New Zealand Dollar

After rallying against its peers following the release of Chinese import/export figures, the ‘Kiwi’ consolidated gains against the US Dollar prior to the publication of New Zealand’s performance of manufacturing index.

NZD/GBP is trading in the region of 0.5044, NZD/EUR is trading in the region of 0.6124 and NZD/USD is trading in the region of 0.8340

Canadian Dollar

The ‘Loonie’ continues trading above 90 cents against the US Dollar as disappointing data pressures keep the ‘Greenback’ trading lower and the impact of Canadian news remains limited. Although the Canadian Dollar is likely to stay trading in a fairly narrow range today, tomorrow’s domestic housing price index could have a notable impact.

CAD/GBP is trading in the region of 0.5527, CAD/EUR is trading in the region of 0.6694 and CAD/USD is trading in the region of 0.9095

These exchange rates were correct as of 12:50 GMT


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