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Exchange Rate News: Pound And Euro Volatility Likely As BoE And ECB Meet

Published: 5 Dec at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Japan, South Africa,

Pound Sterling
GBP/USD– Trading in the Region 1.6392
After slipping against its major rivals yesterday following a mildly disappointing UK services PMI, Sterling was holding steady against its US counterpart and edged slightly lower against the Euro as the European session opened. With a stream of influential events (including the Bank of England rate decision) taking place today Pound volatility is likely.

US Dollar
USD/EUR – Trading in the Region of 0.7342
Although speculation surrounding tomorrow’s US non-farm payrolls report is piling pressure on the US Dollar, the safe-haven currency could strengthen today if US data adds to the case for the Federal Reserve tapering stimulus in December. During the North American session US GDP, initial jobless claims and factory orders reports are all due to be published.

Euro
EUR/USD – Trading in the Region of 1.3618
Ahead of the European Central Bank’s rate decision and policy statement the Euro was slightly stronger against the Pound. However, if the mixed Eurozone data seen in recent weeks prompts the central bank to reference negative rates the Euro could tumble as local trading continues.

Australian Dollar
AUD/USD – Trading in the Region of 0.9033
In yet another concerning sign that the Australian economy is struggling, a report revealed that the nation recorded a larger-than-forecast trade deficit in October. The disappointing result saw the ‘Aussie’ extend and consolidate losses against its US and New Zealand rivals.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8201
The New Zealand Dollar’s bullish relationship with the ‘Aussie’ continued overnight, and economists are now speculating on the probability of the Australian Dollar falling to parity against its currency rival. Global developments, including news from the US, will be the main cause of ‘Kiwi’ movement before the weekend.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9376
The ‘Loonie’ was left languishing close to three-year lows against its US counterpart during North American trading as the Bank of Canada left rates unchanged and commented on domestic inflation concerns. Canadian Dollar fluctuations could be triggered today by domestic PMI and building permits reports.

Japanese Yen
USD/JPY – Trading in the Region of 102.0400
Falling equities helped the safe-haven Yen recoup losses against the ‘Greenback’ during the Australasian session. The currency was also supported by positively revised foreign bond buying data.

South African Rand
USD/ZAR – Trading in the Region of 10.4545
After sliding beyond a three-week low against the US Dollar in the wake of positive data releases for the world’s largest economy the Rand stabilised as local trading began. If today’s US news also supports the case for the Fed tapering easing the Rand could drop further as the day progresses.
As of Thursday, 5th December 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1948, GBP USD exchange rate was 1.6331, GBP AUD exchange rate was 1.8015, GBP NZD exchange rate was 1.987, GBP CAD exchange rate was 1.7391, GBP JPY exchange rate was 166.1436, and GBP ZAR exchange rate was 17.0792.
Laura Parsons About Author: (357 Posts)Laura works in the financial sector as a currency analyst, studying the latest global economic developments and assessing their impact on the foreign exchange market. Laura uses her currency knowledge to write articles focussing on market movements and trends for several independent financial websites.

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