Published: 2 May at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Japan, South Africa,
GBP/EUR â€“ Fluctuations Likely
As European markets opened the Pound was trading within touching distance of an 11-week high against the US Dollar, but the British currency softened slightly against several of its other most traded peers ahead of the publication of UK construction output figures. The data showed that the construction sector contracted by less-than-expected in April. Sterling could gain modestly in the hours ahead, although the ECB rate announcement will be the primary cause of market movement.
USD/GBP â€“ Trading Higher
Although worse-than-expected US employment data caused the â€˜Greenbackâ€™ to dip during local trade, the currency recovered losses after the FOMC pledged to stick with its present level of stimulus. The central bank also intimated that it was ready and willing to adjust the programme if economic conditions should improve/worsen.
EUR/USD â€“ Movement Expected
The Euro approached a two-month high against the US Dollar yesterday on the expectation that the European Central Bank will issue a rate cut following todayâ€™s policy meeting. The common currency weakened slightly this morning but is likely to experience significant movement over the next few hours.
AUD/USDâ€“ Trading Lower
As the US Dollar recovered recent losses following the FOMC policy announcement the â€˜Aussieâ€™ weakened against its rival. Losses were exacerbated by the news that China
â€™s export orders fell for the first time in 2013.
NZD/USD â€“ Trading Lower
After the price of whole milk powder (one of New Zealandâ€™s key exports) fell by over 10 per cent the â€˜Kiwiâ€™ lost ground against several of its most traded currency peers. The New Zealand Dollarâ€™s declines were also the result of a report showing that Chinaâ€™s factory sector growth eased in April. The biggest cause of market volatility in the hours ahead will be the ECB rate decision.
CAD/USD â€“ Trading Higher
Although the â€˜Loonieâ€™ retreated from Tuesdayâ€™s highs during local trade as commodities dipped, the Canadian Dollar was later supported by the Fedâ€™s decision to continue with the present level of monthly asset purchases. As the European session opened the â€˜Loonieâ€™ was trading in the region of 0.9923 against the US Dollar.
JPY/USD â€“ Trading Higher
Following the publication of weaker-than-anticipated US employment data the Yen was able to strengthen to 97.23 against the â€˜Greenbackâ€™. Japanâ€™s currency retained these gains after the FOMCâ€™s policy announcement, where the central bank intimated that it was prepared to take additional stimulus steps if they should prove necessary.
ZAR/USD â€“ Trading Lower
With the ECBâ€™s rate announcement looming the commodity-driven Rand was slightly softer against the US Dollar as the European session began. Wednesdayâ€™s public holiday limited the South African currencyâ€™s movement, but Rand fluctuations are likely to occur in the hours ahead.
As of Thursday, 2nd May 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1892, GBP USD exchange rate was 1.5533, GBP AUD exchange rate was 1.5147, GBP NZD exchange rate was 1.828, GBP CAD exchange rate was 1.5695, GBP CNY exchange rate was 9.5619, GBP JPY exchange rate was 152.2283, and GBP ZAR exchange rate was 13.8865.