Published: 2 Jun at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Greece,
Pound Sterling (GBP)
After domestic data failed to impress on Monday, the Pound softened versus most of its currency rivals. Whilst the Manufacturing PMI showed output remained in growth territory, Mayâ€™s seasonally-adjusted manufacturing output of 52.0 was slightly below the median market forecast figure of 52.5.
Tuesday morning has seen the Pound holding a weak position as traders await domestic data results. Should the data produce positive results the Pound is likely to recover losses made from missing manufacturing estimates.
The single currency softened considerably on Monday after bold statements from the Greek Prime Minister Alexis Tsipras shook up the market. Tsipras stated that the concessions he has been asked to make were unreasonable and compromise his electoral red lines.
However, the shared currency recovered much of its losses on Tuesday morning after an emergency meeting was held between several Eurozone, IMF and ECB members to discuss Greece
. Although there doesnâ€™t seem to have been any significant progress made, the fact that extra meetings are taking place suggests the Eurogroup are doing everything they can to find a solution.
US Dollar (USD)
In response to relatively positive domestic data on Monday, the US Dollar rallied versus the majority of its closest traded competitors. The better-than-expected manufacturing output caused rate hawks to bring forward bets as to the timing of a Federal Reserve rate hike.
Tuesday has seen the US Dollar trimmed back a little after attractive selling positions caused many traders to lock-in Dollar profits. US Factory Orders data has the potential to provoke Dollar volatility later this afternoon.
Australian Dollar (AUD)
In the latter half of Mondayâ€™s European session, the Australian Dollar slumped versus its major peers in conjunction with the US Dollar surge. However, the Oceanic asset has seen a significant boost on Tuesday after the Reserve Bank of Australia
(RBA) opted to hold the benchmark interest rate. The gains have been somewhat sluggish, however, given that the RBA left the door open for future cuts if the â€˜Aussieâ€™ (AUD) remains resiliently overvalued.
The New Zealand Dollar softened on Monday in response to weakness in the dairy market. The US Dollar strength also aided the â€˜Kiwiâ€™ (NZD) downtrend. Tuesday has seen a fractional recovery thanks to a slightly softer US Dollar and rising commodity prices.
Canadian Dollar (CAD)
The â€˜Loonieâ€™ (CAD) gained a little versus some of its major rivals on Monday after manufacturing output improved. With the Manufacturing PMI still remaining in contraction territory, and with crude prices dropping, the Canadian asset was pared back towards the end of Mondayâ€™s European session. Tuesday has seen the â€˜Loonieâ€™ edge higher in response to slightly higher crude oil prices.
As of Tuesday, 2nd June 2015, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.3759, GBP USD exchange rate was 1.5342, GBP AUD exchange rate was 1.9751, GBP NZD exchange rate was 2.1378, and GBP CAD exchange rate was 1.9041.