Published: 4 Apr at 10 AM Tags: Euro, Dollar, Pound Sterling, America, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Japan, South Africa,
The Pound softened against the US Dollar and a number of major peers after it was weighed upon by a weaker-than-expected service sector PMI report released on Thursday. Against the Euro, the Pound pushed above the 1.21 level after the single currency was weakened by the outcome of the European Central Banks policy meeting. The ECB did little to ease concerns over the threat of deflation and the weak economic recovery across the region.
The US Dollar climbed against many of its peers after mixed data releases increased speculation that the Federal Reserve will continue to taper its easing programme. Todayâ€™s nonfarm payrolls report is eagerly anticipated as it will give a clearer picture as to the true strength of the worldâ€™s largest economy. If the data comes in strongly it will pave the way forward for the US Federal Reserve to continue reining in its monthly bond buying program
The Euro fell to its lowest level in over a month against the US Dollar and fell against the Pound due to dovish comments made by ECB President Mario Draghi weighing on sentiment. Draghi talked down the risks from deflation in the Eurozone, but added that the Bank has not ruled out the use of further policy action such as quantitative easing.
The â€˜Aussieâ€™ is little moved against the US Dollar and other peers as investors went into a holding pattern before the release of todayâ€™s US jobs report. If the data comes in strongly then the â€˜Greenbackâ€™ will rise at the expense of the â€˜Aussieâ€™.
The New Zealand Dollar fell against its peers after international dairy prices tumbled to their lowest level in over a year as excess supply from New Zealand dragged down prices. As a result of the decline the â€˜Kiwiâ€™ finally retreated from its stubbornly high levels.
posted its first trade surplus in five months sending the Canadian Dollar higher against its peers. According to Statistics Canada, the trade surplus came in at C$290 million in February. In the first month of the year the nation posted a trade deficit of C$340 million. The surplus figure was better than the C$ 200 million economists had been expecting.
The Yen was slightly firmer against its peers as investors opted for the safe haven currency as they went into a holding pattern ahead of todayâ€™s US nonfarm payrolls report. A weaker than expected outcome could see the Yen reverse its recent run of losses as any signs of weakness in the US economy are sure to spook investors on concerns over the health of the global economy.
South African Rand
The Rand remained under pressure against its rivals as investors await the release of the US jobs data. A strong report will send the Rand down against the â€˜Greenbackâ€™ and with pressure remaining high from the 10-week long strike in the platinum mining sector.
As of Friday, 4th April 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2097, GBP USD exchange rate was 1.6577, GBP AUD exchange rate was 1.7839, GBP NZD exchange rate was 1.927, GBP CAD exchange rate was 1.8204, GBP JPY exchange rate was 171.2197, and GBP ZAR exchange rate was 17.5217.