30th January 2014

US Dollar Stronger after FOMC


Pound Sterling

Dollar currency news

This morning the Pound was trading lower against both the Euro and US Dollar as the common currency was boosted by upbeat German data and the ‘Greenback’ remained riding high in the wake of the FOMC decision.

If today’s UK report shows the increase in mortgage approvals expected the Pound could claw back losses over the course of the day.

GBP/EUR is trading in the region of 1.2134 and GBP/USD is trading in the region of 1.6511

US Dollar

The FOMC’s decision to taper stimulus by 10 billion Dollars allowed the ‘Greenback’ to advance on several of its peers and post notable gains against emerging market currencies overnight. The North American asset could extend gains later today if US growth data and initial jobless claims figures support the Fed’s view of a gradually improving US economic outlook.

USD/GBP is trading in the region of 0.6057 and USD/EUR is trading in the region of 0.7324

Euro

Although the Euro began the day in a softer position against a supported US Dollar, the common currency recouped losses after the publication of German employment data. The unexpectedly large drop in the number of unemployed Germans helped the Euro advance on several of its peers ahead of the release of inflation data for the Eurozone’s largest economy.

EUR/GBP is trading in the region of 0.8241 and EUR/USD is trading in the region of 1.3615

Australian Dollar

The ‘Aussie’ slipped against its US peer during local trading as investors turned from higher-risk assets in response to the Fed’s decision to taper stimulus by $10 billion. The Australian Dollar was also feeling the pressure as reports showed a 0.4 per cent decline in Australian new home sales and a larger-than-forecast drop in both Australia’s export and import price index. Less-than-impressive manufacturing data for China compounded the ‘Aussie’s declines.

AUD/GBP is trading in the region of 0.5280, AUD/EUR is trading in the region of 0.6433 and AUD/USD is trading in the region of 0.8752

New Zealand Dollar

After the Reserve Bank of New Zealand opted to hold the benchmark interest rate at 2.5 per cent the ‘Kiwi’ posted widespread declines. As New Zealand relies heavily on China for trade, the news that a gauge of manufacturing for the Asian nation fell by more-than-forecast also pushed the South Pacific currency lower.

NZD/GBP is trading in the region of 0.4933, NZD/EUR is trading in the region of 0.5987 and NZD/USD is trading in the region of 0.8168

Canadian Dollar

The FOMC announcement saw the ‘Loonie’ fall further against the ‘Greenback’. The Canadian Dollar continues to trade below 90 US cents ahead of tomorrow’s influential domestic growth data.

CAD/GBP is trading in the region of 0.5423, CAD/EUR is trading in the region of 0.6581 and CAD/USD is trading in the region of 0.8948

These exchange rates were correct as of 9:35 am


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