18th February 2014

UK CPI Decline Could Cause Sterling Volatility


Pound Sterling

Euro to Pound

Before the UK’s consumer price index was published the GBP/USD pairing was trading close to a four year high.b> However, with UK inflation figures coming in below forecast levels the Pound could fluctuate in the hours ahead.

GBP/EUR is trading in the region of 1.2162 and GBP/USD is trading in the region of 1.6684

US Dollar

Although today’s US housing data could inspire some ‘Greenback’ movement, the currency’s fluctuations may be a little restrained prior to the publication of minutes from the latest Federal Open Market Committee meeting, which are due out tomorrow.

USD/GBP is trading in the region of 0.5994 and USD/EUR is trading in the region of 0.7293

Euro

Ahead of the release of economic sentiment surveys for Germany and the Eurozone the Euro was holding fairly steady against peers like the US Dollar and Pound. A positive surprise could see the Euro advance.

EUR/GBP is trading in the region of 0.8222 and EUR/USD is trading in the region of 1.3718

Australian Dollar

As the minutes from the RBA’s latest policy meeting didn’t directly talk down the ‘Aussie’ the commodity-driven currency was able to strengthen overnight. Although the Australian Dollar went on to trim its advance it still ended the Australasian session stronger than it began.

AUD/GBP is trading in the region of 0.5408, AUD/EUR is trading in the region of 0.6567 and AUD/USD is trading in the region of 0.9002

New Zealand Dollar

While the ‘Kiwi’ softened against the Australian Dollar during local trading, additional movement was limited ahead of the release of New Zealand’s consumer confidence index.

NZD/GBP is trading in the region of 0.4981, NZD/EUR is trading in the region of 0.6088 and NZD/USD is trading in the region of 0.8319em>

Canadian Dollar

A lack of North American developments restrained ‘Loonie’ movement yesterday. The currency could pare gains against the ‘Greenback’ today however if Canadian existing home sales data confirms the belief that the nation’s housing sector is experiencing a ‘soft landing’.

CAD/GBP is trading in the region of 0.5451, CAD/EUR is trading in the region of 0.6652 and CAD/USD is trading in the region of 0.9122

These exchange rates were correct as of 10:00 GMT


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