4th March 2014

US Dollar Trims Gains, Pound Advances


Pound Sterling

Euro to Pound

The Pound strengthened against the Euro and US Dollar as a gauge of UK construction output showed sharp expansion in February.

Although the Markit PMI came in slightly shy of estimates, job creation was at a three month high and the reduction in construction output was largely due to the adverse weather conditions seen at the beginning of the year.

GBP/EUR is trading in the region of 1.2126 and GBP/USD is trading in the region of 1.6675

US Dollar

With fears regarding Russian military intervention easing, demand for safe-haven assets like the ‘Greenback’ has dipped and the US Dollar is slightly weaker against peers like the Pound and Euro. The North American currency is unlikely to experience much movement today as news from the US is limited.

USD/GBP is trading in the region of 0.5995 and USD/EUR is trading in the region of 0.7274

Euro

The Euro edged lower against the Pound this morning as the Eurozone’s producer price index showed a steeper decline than expected. Yesterday ECB President Mario Draghi stated that low inflation remains a concern, and with the central banks’ policy decision looming the Euro may remain under pressure.

EUR/GBP is trading in the region of 0.8248 and EUR/USD is trading in the region of 1.3753

Australian Dollar

Although the Reserve Bank of Australia stated that the ‘Aussie’ remains overvalued, the currency’s declines were limited as reports showed a narrowing in the nation’s current account deficit and a surge in Australian building permits.

AUD/GBP is trading in the region of 0.5361, AUD/EUR is trading in the region of 0.6505 and AUD/USD is trading in the region of 0.8956

New Zealand Dollar

‘Kiwi’ movement was restrained once again during Australasian trading, although the New Zealand Dollar did edge lower against its neighbouring counterpart. Tomorrow’s Chinese HSBC/Markit non-manufacturing PMI could have an impact on the currency.

NZD/GBP is trading in the region of 0.5020, NZD/EUR is trading in the region of 0.6093 and NZD/USD is trading in the region of 0.8382

Canadian Dollar

The ‘Loonie’ pared recent gains overnight as the price of commodities like Brent oil stabilised in response to dimming Ukrainian fears. A lack of Canadian data may restrain Canadian Dollar movement today.

CAD/GBP is trading in the region of 0.5412, CAD/EUR is trading in the region of 0.6562 and CAD/USD is trading in the region of 0.9026

These exchange rates were correct as of 10:50 GMT


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