Daily Currency update
Daily Currency update
The Pound slipped against the US Dollar as speculation increased over whether the Bank of England will implement a further round of monetary easing. The Pound had risen on the back of the fact that the BoE said it would not make further interest rate cuts but as many predicted the rise was very short-lived. Worries over the state of the British economy have dragged on the Pound and has forced the currency lower against the safe havens of the Japanese Yen and US Dollar. After yesterday's revelation that the UK trade deficit hit a 15 year high the Pound could drop even further. Against the Euro the Pound made some gains as concern over the Euro crisis outweighs the worry over the UK’s situation.
Currently, the Pound is trading in the region of 1.269 against the Euro and 1.558 against the US Dollar.
The Dollar has risen against the Euro and Pound after the worries over the Euro crisis and UK economy’s drag down on the respective currencies. As worries continue to rise over the state of the European economies the safe haven Dollar is sure to make gains, reversing the losses it posted last week. The Dollar is almost certainly going to make further gains against the two pairs as investors search for a safe haven.
Currently, the Dollar is trading in the region of 0.813 against the Euro and 0.640 against the British Pound.
The Euro has weakened against a basket of currencies after coming under pressure after the optimism from traders waned over the European Central banks so-called tough action to solve the euro-crisis. The euro went down by 0.3 percent at 78.75 pence - its lowest level in nearly a week. The ECB's pre-condition for action, which included troubled countries asking for help from the euro zone's rescue funds, undermined currency traders confidence in the euro rally.
Currently, the Euro is trading in the region of 0.787against the British Pound and 1.226 against the US Dollar.
The ‘Aussie’ has fallen overnight thanks to weaker than expected Chinese and US data. The Dollar was not helped by the Australian Central bank who has warned that the strength of the currency could prove detrimental to the country’s economy. We could well see the currency make losses next week as the RBA takes action in an effort to lower the high value of the ‘Aussie’ in a bid to bolster exports.
Currently, the Australian Dollar is trading in the region of 0.856 against the Euro, 1.051 against the Australian Dollar and 0.673 against the British Pound.
New Zealand Dollar
The ‘Kiwi’ has made further losses thanks to the Reserve Bank of Australia’s warning that the ‘Aussie’ is threatening the Australian economy. The worse than expected data in China and the poor employment figures out of New Zealand also proved detrimental to the ‘Kiwi’s’ fortunes.
Currently, the New Zealand Dollar is trading in the region of 0.658 against the Euro, 0.809 against the US Dollar and 0.517 against the British Pound.
The ‘Loonie’ is maintaining its premium against the US Dollar and is forcing traders to adapt to an exchange rate that has for years seen the US currency as the stronger of the two.
Currently, the Canadian Dollar is trading in the region of 1.006 against the US Dollar, 0.819 against the Euros and 0.644 against the British Pound