Daily Currency update – 06th May 2014

Daily Currency update – 06th May 2014

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foreign currency

Daily Currency update

Pound Sterling

The Pound is trading higher against the US Dollar as UK markets reopen following the Bank holiday weekend. Sterling was finding support ahead of the release of today’s Markit UK Services PMI data which is forecast to show a further strengthening of the UK’s dominant sector.

US Dollar

The US Dollar is weaker against the Pound and Euro after coming under pressure following the release of last week’s unemployment data. The Non-Farm Payrolls report showed that the labour force participation rate fell and wage growth weakened. Investors are also remaining cautious due to an escalation in violence in Ukraine over the weekend.

The Euro

The Euro pushed higher against the US Dollar and firmed against the Pound after the European Commission said on Monday that it expects the European economy to continue to recover throughout the year. It expects the Eurozone’s economy to expand by 1.2% in 2014 and by 1.7% in 2015. The currency could find further support if today’s Eurozone retail sales data comes in positively.

Australian Dollar

The ‘Aussie’ strengthened against the US Dollar after the Australian Reserve Bank left interest rates unchanged and said that there had been improvement in the nation’s job market. The positive tone of the RBA and the decision to leave rates unchanged at 2.5% bolstered the ‘Aussie’.

New Zealand Dollar

The New Zealand Dollar advanced for a sixth consecutive day against the US Dollar and made gains against the Pound and Euro as investors await today’s report which is forecast to show that unemployment in the South Pacific nation fell to its lowest-level in four years.

Canadian Dollar

 The Canadian Dollar ended yesterday’s session stronger but is expected to remain range bound for most of the week due to a lack of key domestic data releases. That could change on Friday however as the latest unemployment figures for the North American nation are to be published.

South African Rand

The Rand fell from its highest-level in three-weeks yesterday after data showed that unemployment was rising in South Africa. Data showed that the nation’s jobless rate edged higher to 25.25% in the first quarter of 2014. The currency remains under pressure from the ongoing strife in the nation’s platinum mining sector. The strike now looks likely to drag on for a sixteenth consecutive week.