Published: 19 Mar at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Cyprus, Australia, New Zealand, USA, Canada, Germany, Japan,
After climbing to a five-week high against a broadly softening Euro yesterday, the Pound was little changed this morning prior to the release of the UKâ€™s Consumer Price Index for February. The report showed that UK inflation accelerated last month, up by 2.8 per cent from February of 2012. This result was in line with expectations. Whilst this data triggered little Sterling movement investors will also be looking to the Eurozone and this afternoonâ€™s vote on the levy of Cypriot bank deposits.
With risk firmly off the menu following a fresh development in the Eurozone crisis the safe-haven US Dollar broadly strengthened, gaining on most of its riskier rivals. Recent positive economic data for the US has upped the appeal of the currency, and if todayâ€™s US Building Permits and Housing Starts data also impresses the â€˜Greenbackâ€™ could continue to climb.
With eyes firmly set on Cyprus, and this afternoonâ€™s parliamentary vote on the proposed bank tax, the Euro declined for a second day. The common currency continues to trade within the region of a three-month low against its safe-haven rival the US Dollar. Although this morningâ€™s German Zew Economic Sentiment Survey will be of interest, additional Euro movement is likely to be the result of unfolding news from Cyprus.
Following the release of minutes from the Reserve Bank of Australia
â€™s latest policy meeting â€“ in which Deputy Governor Philip Lowe defended a higher exchange rate â€“ the â€˜Aussieâ€™ modestly strengthened. The Australian Dollar posted gains against its American and Japanese counterparts on Loweâ€™s assertion that a stronger â€˜Aussieâ€™ helped to restrain inflation and made lower interest rates possible. The nationâ€™s next piece of volatile data, the Australian Conference Board Leading Index, is due for release on Thursday but the South Pacific currency could fluctuate in the meantime as a result of global economic developments.
The â€˜Kiwiâ€™ fell against the majority of its peers during local trade after New Zealandâ€™s Finance Minister Bill English asserted that the currency is overvalued. He went on to state that lowering the New Zealand Dollar was beyond the governmentâ€™s influence, and the â€˜Kiwiâ€™ dropped to 82.42 US cents in response to his remarks. With New Zealandâ€™s Current Account Balance for the 4Q due for release at 21.45 GMT, and further news regarding the Cypriot bank tax expected, the â€˜Kiwiâ€™ could experience additional movement in the hours ahead.
With risk aversion dominating the market as a result of the controversial proposal to impose a levy on Cypriot bank deposits, the Canadian Dollar fell against its US counterpart, posting its biggest decline for a week. Losses were tempered however after data revealed foreign buyers renewed interest in Canadian bonds in January. Whilst news from the Eurozone is likely to cause widespread volatility in the marketplace today, the â€˜Loonieâ€™ could also fluctuate following the release of Canadian Manufacturing Shipments and Wholesale Sales figures.
As of Tuesday, 19th March 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1735, GBP USD exchange rate was 1.5095, GBP AUD exchange rate was 1.457, GBP NZD exchange rate was 1.833, GBP CAD exchange rate was 1.5503, and GBP JPY exchange rate was 143.4997.