British house prices fell more than expected
British house prices fall
The Pound has fallen to a one-month low against the Euro and a number of other currencies, after being undermined by the UK’s weak economy. Traders are anticipating further monetary easing by the Bank of England in the near future. British house prices fell more than expected last month, the latest in a string of poor UK economic data. It followed surveys last week showing growth in Britain's dominant services sector slowed last month while manufacturing activity shrank, suggesting a poor start to the third quarter after the economy contracted more than expected in the first half of the year.
Currently, the pound is trading in the region of 1.256 against the Euro and 1.562 against the US Dollar.
The US Dollar weakened against a basket of currencies as risk appetite increased after German Chancellor Angela Merkel backed the European Central Banks bond buying scheme. The New Zealand Dollar hit a three- month high against the Greenback, The Australian Dollar hit a four-month high and the Japanese Yen also posted gains. When demand for riskier currencies increases the Dollar often weakens as a result as seen over the past few days.
Currently, the Dollar is trading in the region of 0.807 against the Euro and 0.641 against the British Pound.
The Euro dipped slightly against the US Dollar, retreating from the one-month high it struck yesterday, it recovered, however, over-optimism over the Euro crisis. The single currency remains buoyed as investors wait and see what happens with the European Central Bank. Many are hoping that the ECB will again take action to assist Italy and Spain with their spiralling borrowing costs. The details of the ECB plans are not yet known for certain, but traders believe that the currency could make further gains as markets remain optimistic.
Currently, the Euro is trading in the region of 1.241 against the US Dollar and 0.795 against the British Pound.
The ‘Aussie’ has hit a four-month high against the US Dollar following the Reserve Bank of Australia’s decision to maintain interest rates at the 3.5% level. The Bank decided to maintain the current rate saying it is comfortable with Australia’s economic performance and growth prospects. The bank chairman Glenn Stevens added to the sense of optimism by saying that the country’s biggest trade partner China does not appear to be slowing further but maintaining a sustainable pace. The release of Australian employment data on Thursday will be a good indicator to see if Stevens’s optimism is justified.
The Australian Dollar is trading in the region of 0.853 against the Euro, 1.059 against the US Dollar and 0.679 against the British Pound.
New Zealand Dollar
The ‘Kiwi’ is expected to extend yesterday’s gains following the interest rate decision out of Australia. Optimism over a possible bailout of Spain and European Central Bank aid to assist struggling European nations with its bond selling has also seen investors more inclined to take risks aiding the New Zealand Dollar and other commodity currencies.
The New Zealand Dollar is trading in the region of 0.662 against the Euro, 0.820 against the US Dollar and 0.526 against the British Pound.
The ‘Loonie’ continues to meet gains against its US counterpart thanks to the continuing buoyancy of the country’s primary export of crude oil, three-quarters of Canada’s exports go to the U.S and demand for oil is on the rise in States.
The currency has broken through parity against its North American relation and continues to strengthen against the Euro hitting a new record high of 1.239.
The Canadian Dollar is trading in the region of 0.807 against the Euro, 1.0005 against the US Dollar and 0.641 against the British Pound