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foreign currency updates

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Currency Update

Pound Sterling

The Pound fell against the majority of its peers yesterday after the Bank of England said that it was in no rush to raise interest rates and failed to revise its growth forecasts for the coming year as economists had expected. Positive unemployment data was overshadowed by disappointing wage growth figures. With a lack of UK data today we could see the Pound soften further if events elsewhere weigh upon the currency.

US Dollar

The US Dollar advanced to its best level in 3-weeks against the Pound yesterday after comments made by the Bank of England weighed upon the UK currency. The ‘Greenback’ found some support from data which showed that applications for mortgages increased last week, easing some of the concern over the US housing market. Economists are expecting today’s US jobless claims, manufacturing and industrial production data to add to signs that the world’s largest economy is continuing its recovery.

The Euro

The Euro softened slightly against the Pound and US Dollar after data showed that growth in the French economy stalled in the first quarter of the year. The German economy meanwhile grew more than forecast highlighting the disparity between the Eurozone’s top two economies.  GDP data for the wider Eurozone as well as inflation data will be closely watched today as weakness in either could cause investors to raise their bets that the European Central Bank will introduce new stimulus measures at next month’s policy meeting.

Australian Dollar

The ‘Aussie’ edged higher against its peers as investors wait for today’s US data releases. A stagnant new car sales report had little impact on the currency. Official data showed that new car sales in Australia were flat last month.

New Zealand Dollar

The New Zealand Dollar remained firmer against several rivals despite the release of disappointing manufacturing data. Business New Zealand’s performance of manufacturing index dropped to 55.3 in April, down from the 58 recorded in March and well below forecasts for a rise to 58.4.

Canadian Dollar

The Canadian Dollar edged higher against several counterparts due to a rise in commodity prices and increased demand for perceived riskier assets. The price of crude oil, Canada’s biggest export, climbed to its highest level in three-weeks.

South African Rand

The Rand is little moved from yesterday’s levels as it remained supported by increased risk appetite. Continuing violence in the South African platinum mining belt and events in Ukraine could still weigh upon the Rand.

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Pound Sterling

On Monday the Pound was little moved against its major peers due to a lack of data releases. The only piece of data due for Sterling is the latest Lloyds employment confidence report, which is likely to have little impact upon the market. Traders will be looking ahead to Wednesday’s UK unemployment and inflation data. If unemployment falls further then we can expect Sterling to strengthen as more pressure will be placed upon the Bank of England to raise interest rates.

US Dollar

The US Dollar is holding steady against its peers as investors look ahead to this evening’s monthly US budget statement. A lack of other data is likely to leave the currency static throughout the session. Traders remain cautious following the weekend’s referendum victory for Pro-Russian separatists in Ukraine. The world will be watching to see how Kiev responds to a vote which it deems illegal.

The Euro

The Euro is trading close to a one-month low against the US Dollar and remains weaker against the Pound as investors await speeches by European Central Bank officials. The single currency remains under pressure after ECB President Mario Draghi said that the Central Bank could introduce monetary easing measures next month.

Australian Dollar

The ‘Aussie’ experienced little movement overnight despite the release of positive domestic business confidence data. The currency was unable to make gains as concerns over geopolitical tensions in Ukraine and a standoff between China and Vietnam dented demand for riskier assets.

 New Zealand Dollar

The New Zealand Dollar inched higher against its U.S. counterpart but was little moved against the Pound on Monday. Gains are expected to remain limited as investors exert caution amid ongoing Ukrainian concerns.

Canadian Dollar

The Canadian Dollar remains under pressure from last week’s dismal jobs data and weakened along with other higher –risk assets due to the situation in Ukraine.

 South African Rand

The Rand was holding its ground against several peers as the local session opened and is not far from last week’s five-month high against the US Dollar. Concerns over Ukraine are likely to soften the currency as investors grow averse to riskier assets. Investors will also be looking ahead to a mining report due out later in the week. The data will provide a good indication of what impact the four-month strike has had on the nation’s platinum mining sector.

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Pound Sterling

The Pound climbed to its strongest-level in years on Tuesday as positive service PMI data combined with a softer-than-forecast US trade report. Sterling looks set to remain supported throughout today’s session as investors look ahead to tomorrow’s Bank of England interest rate and quantitative easing decisions. With the UK economy performing strongly, pressure is building upon policy makers to raise interest rates sooner-than-expected.

US Dollar

The US Dollar tumbled against many of its major peers due to the release of stronger-than-expected data out of the Eurozone and UK. A weaker-than-forecast trade report for the USA also weighed. The data showed that the US trade deficit narrowed to $40.38 billion in March, just short of expectations for a decline to $40.30 billion. Investors will be looking ahead to the afternoon’s speech by Federal Reserve Chairman Janet Yellen for direction.

The Euro

The Euro is trading close to a seven-week high against the US Dollar as a run of positive Eurozone data releases increased speculation that the European Central Bank will not introduce more stimulus measures at this week’s policy meeting. Yesterday’s data showed a sharp fall in unemployment in Spain and showed that the regions private sector got off to a strong start in the second quarter of the year.

Australian Dollar

The ‘Aussie’ pushed back above the 93 cents mark against the US Dollar and is holding steady despite data showing that retail sales in Australia increased lower than expected in March. Sales rose by 0.1% below expectations for a rise of 0.4%. Against the Pound and Euro the ‘Aussie’ softened.

 New Zealand Dollar

The New Zealand Dollar is weaker against most of its major peers after Reserve Bank of New Zealand Chairman Graeme Wheeler warned that the currency was too high and suggested that the Central Bank could intervene to force it lower. Data released earlier in the Asian session showed that the number of people in work rose by 0.9% in the first quarter.

Canadian Dollar

The Canadian Dollar rallied against the US Dollar and was little moved against the Pound and Euro due to the release of yesterday’s fairly positive trade data. Despite Canada’s trade surplus narrowing more-than-forecast the ‘Loonie’ was able to take advantage of the weakness of the US Dollar.

 South African Rand

The Rand rallied yesterday due to an improvement in demand for riskier assets and as it tracked the Euro higher. Today the South African markets are closed for the nation’s general election. Trading will resume on Thursday.

Courtesy of Torfx

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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.