Published: 20 Mar at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Cyprus, Australia, New Zealand, USA, Canada, China, Italy, Japan,
GBP/USD â€“ Little changed, but movement expected
Although market movement has largely been dictated by developments in Cyprus over the last few days, news from the UK is likely to cause movement in the Pound in the hours ahead. While the minutes of the latest Bank of England policy meeting and UK employment data will be of interest, Chancellor of the Exchequer George Osborneâ€™s presentation of the 2013 budget is the big event of the day. After last yearâ€™s pasty tax debacle, and with the threat of a triple-dip recession far from removed, the Chancellor will be under greater scrutiny than ever.
US Dollar â€“ USD/JPY Hits 95.30
The US Dollar has broadly strengthened in recent days as investors seek a safe-haven in the face of fresh Eurozone turmoil, and as the Bank of Japan welcomes its new governor the American currency made additional gains on the Yen. With Haruhiko Kuroda as the BOJ Governor the odds of the central bank implementing aggressive monetary stimulus at its meeting in early April have increased, causing the Yen to soften. In the days ahead the US Dollar could continue to climb against this rival.
EUR/USD â€“ Modestly higher
Recent developments in Cyprus saw the Euro plummet to an over three-month low against the US Dollar yesterday, but the Euro has managed to claw back some ground as industry experts speculate on what course of action the European Central Bank will take. Although the levy on Cypriot bank deposits demanded by the ECB was rejected by the nationâ€™s Parliament, the central bank has restated its commitment to the floundering Eurozone member. With some industry experts fearing that this situation heralds a new phase of the Eurozone crisis, any announcements relating to Cyprus are likely to cause Euro movement, but this afternoonâ€™s Consumer Confidence figures for the Eurozone will also be of interest. It is likely that Consumer Confidence in the currency bloc fell in March in response to the inconclusive Italian election.
AUD/USD â€“ Trading Lower
After rising yesterday on the strength of comments issued by the Deputy Governor of the Reserve Bank of Australia
, the â€˜Aussieâ€™ fell against the US Dollar after the Cypriot Parliament voted against the proposal to impose a levy on bank deposits. The Australian Dollar declined by the most for a week against its American counterpart and fell against several of its other main trading partners. The â€˜Aussieâ€™ could drop further if tomorrowâ€™s Flash Manufacturing PMI for China
adds to recent indications of a slowdown in the worldâ€™s second largest economy.
NZD/USD â€“ Trading Lower
The â€˜Kiwiâ€™ continued to decline during local trade as several factors wore on the South Pacific currency. While news from Cyprus lessened the appeal of riskier assets, New Zealandâ€™s economic outlook received a blow. After the nationâ€™s Finance Minister stated that the current drought will cost the country roughly NZ$2 billion, cutting the odds of interest rates being increased in the near future, the New Zealand Dollar slid to 82.16 US cents. The â€˜Kiwiâ€™ also dropped against the Japanese Yen and British Pound as a report revealed that New Zealandâ€™s current account deficit expanded by more than expected in the final quarter of 2012, rising from 4.7 per cent of gross domestic product to 5. With 4Q GDP data for the country due for release at 21:45 GMT the â€˜Kiwiâ€™ could see further movement.
CAD/USD â€“Trading Lower
Concerns that the Canadian economy is slowing were added to yesterday by a report showing that factory sales in the nation unexpectedly dropped in January. The decline in sales, of 0.2 per cent, was the first for five months. Although recent data revealed a far larger-than-forecast increase in Canadian employment, that single factor isnâ€™t proving enough to offset the less-than-impressive performance of other sectors. During local trade the â€˜Loonieâ€™ slid to 97.39 US cents.
As of Wednesday, 20th March 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1664, GBP USD exchange rate was 1.5094, GBP AUD exchange rate was 1.4546, GBP NZD exchange rate was 1.8271, GBP CAD exchange rate was 1.5482, GBP CNY exchange rate was 9.3761, and GBP JPY exchange rate was 144.8489.