14th March 2014

USD Bullish after FOMC Announcement


Pound Sterling

Euro to Pound

The Pound was struggling against the ‘Greenback’ today as investors flocked to the US asset following the conclusion of the Federal Open Market Committee meeting. UK news had little impact on Sterling during European trading, but tomorrow’s UK public sector net borrowing report may influence the Pound’s performance as we head into the weekend.

GBP/EUR is trading in the region of 1.1980 and GBP/USD is trading in the region of 1.6505

US Dollar

The Fed opted to taper stimulus by a further 10 billion Dollars during its latest policy meeting. The central bank also hinted that interest rate increases may occur in 6 months time, considerably sooner than anticipated. Consequently, the US Dollar adopted a bullish stance and consolidated gains against its major rivals on Thursday.

USD/GBP is trading in the region of 0.6063 and USD/EUR is trading in the region of 0.7262

Euro

US developments and UK optimism kept the Euro trading lower against the US Dollar and Pound ahead of the release of Eurozone current account figures. Tomorrow’s report may not have much of an effect on the Euro and the EUR/GBP pairing could end the week on the back foot.

EUR/GBP is trading in the region of 0.8347 and EUR/USD is trading in the region of 1.3781

Australian Dollar

US news and ongoing concerns regarding the collapse of one of China’s most prominent property developers left the ‘Aussie’ in a funk overnight. Before the weekend Australia’s conference board leading index will prompt additional Australian Dollar movement.

AUD/GBP is trading in the region of 0.5475, AUD/EUR is trading in the region of 0.6562 and AUD/USD is trading in the region of 0.9038

New Zealand Dollar

A report confirming that the pace of economic growth in New Zealand slowed in the fourth quarter of last year made the ‘Kiwi’ falter. New Zealand Dollar losses were also triggered by the big US news.

NZD/GBP is trading in the region of 0.5172, NZD/EUR is trading in the region of 0.6196 and NZD/USD is trading in the region of 0.8535

Canadian Dollar

Ahead of tomorrow’s influential Canadian inflation figures the ‘Loonie’ remained below 89 US cents. The Canadian Dollar was also trading lower against the Pound and Euro.

CAD/GBP is trading in the region of 0.5387, CAD/EUR is trading in the region of 0.6454 and CAD/USD is trading in the region of 0.8890

These exchange rates were correct as of 16:30 GMT


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