Single Currency is Slipping Deeper into Recession
Single Currency Region is in Recession
Foreign Exchange Rates Daily Currency update Pound Sterling
The Pound has risen to a one-week high against a weaker Euro as poor Eurozone business activity data increased concerns amongst the markets that the single currency region is slipping deeper into recession. In comparison, UK retail sales and factory orders were better than economists had predicted.
The UK economy seems to be on the road to recovery for the third quarter. Against the Dollar, Sterling slipped slightly downwards as demand for safe haven currencies continues to rise and the markets perceive the Pound as risky due to its close ties to the Euro.
Currently, the Pound is trading in the region of 1.252 against the Euro and 1.623 against the US Dollar.
The ‘Greenback’ has continued to rise against its peers after weak data from Europe, China and the United States increased fears of a slowdown in global growth.
US manufacturing suffered its weakest quarter for three years and the latest unemployment benefit figures also disappointed.
Currently, the US Dollar is trading in the region of 0.615 against the Pound and 0.770 against the Euro.
The Euro slumped to its lowest level in two months against the US Dollar as a series of disappointing data releases showed that the Euro region’s manufacturing and service industries shrank to a three-year low. The single currency slid by 1.1% its biggest decline since July 20th. The Euro is expected to continue to make losses as the markets wait to see whether Spain will request financial assistance.
Currently, the Euro is trading in the region of 0.798 against the British Pound and 1.296 against the US Dollar.
The ‘Aussie’ has risen against most of its peers on prospects that the US Federal Reserve will support growth and optimism in the Asian markets that Europe is close to reaching a resolution of the debt crisis.
Demand for higher-yielding assets increased as a result. The currency was also aided by the Australian Treasury reassuring the markets that the slowdown in China was in fact due to the nation’s leadership introducing new policies in its bid to alleviate the downturn.
Currently, the Australian Dollar is trading in the region of 0.644 against the Pound, 0.807 against the Euro and 1.047 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ has followed its Australian relation upwards against a basket of currencies due to increased investor appetite for higher-yielding riskier assets. According to traders, the ‘Kiwi’ may go as high as 84.70 US cents in the coming weeks if investors stay upbeat about the future of the global economy.
Currently, the New Zealand Dollar is trading in the region of 0.510 against the Pound, 0.639 against the Euro and 0.830 against the US Dollar.
The ‘Loonie’ fell to an eight-week low against its US relation last night. Data releases from the US, Europe and China all dragged the currency downwards and traders flocked to the safe-haven US Dollar for sanctuary. The currency pair fell as-low-as 97.69 before recovering back above parity this morning. Canada’s currency also wasn’t helped by the fall in oil prices to a six-week low.
Currently, the Canadian Dollar is trading in the region of 0.631 against the Pound, 0.790 against the Euro and 1.025 against the US Dollar.