Published: 22 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, Japan, Russia,
GBP/EUR – At five-week high, potential to climb further
After gaining yesterday on the strength of better-than-expected retail sales figures for the UK, Sterling continued to advance on the Euro as the Cyprus situation reached crisis point. The Pound was trading in the region of a three-week high against the US Dollar after the odds of the Bank of England introducing additional stimulus were lowered by the 2.1 per cent increase in retail sales. Sterling briefly achieved 84.85 pence, its strongest level since February 11th. A lack of UK economic news will limit Sterling movement today but the GBP/EUR pairing could achieve further gains if more negative news emerges from the Eurozone.
USD/EUR – Trading Higher
The US Dollar broadly strengthened during local trade as investors turned to the safe-haven asset in the face of a fresh wave of European turmoil. News that the ECB has given Cyprus until Monday to agree to an essential bailout deal caused the Euro, and other higher-risk currencies, to lose ground against the ‘Greenback’. The US Dollar also benefited by a report showing a drop in the nation’s first-time jobless claims. If Cyprus and the ECB are unable to reach an accord in the time allotted, the USD/EUR paring’s upward momentum could continue.
EUR/USD – Within reach of four-month low
After a testing week the Euro continues to trade in the region of a four-month low against the US Dollar after the situation in Cyprus took a negative turn. The common currency had already softened as a result of poor manufacturing/services data for the Eurozone and slid further after Cyprus’ negotiations with the Russians ended without the nation securing financial aid. The European Central Bank has now given Cyprus just three days in which to agree to a bailout package, leaving the Euro in line to record a 1.4 per cent weekly decline against the US Dollar and a 2 per cent decline against the Japanese Yen.
AUD/USD – Trading within reach of a seven-week high
The Australian Dollar marched toward a modest weekly advance against the US Dollar after gaining during local trade. The ‘Aussie’ was boosted by an increase in an index of leading economic indicators used to forecast short to mid-term growth, but demand for the currency was tempered after the concerning developments in Cyprus weighed on risk appetite.
NZD/USD – Edged close to a two-week high
Although news from the Eurozone triggered widespread risk-aversion, the New Zealand Dollar was lifted by a report showing an increase in job advertisements, trading close to a two week high against its American counterpart. After achieving 83.45 cents a slight decline saw the ‘Kiwi’ trading in the region of 83.23 US.
CAD/USD –Trading in region of a week high
The ‘Loonie’ advanced to its highest level for a week against the US Dollar after Canadian retail sales gained and Finance Minister Jim Flaherty pledged to eliminate the nation’s deficit before the election in two years time. The Canadian Dollar was further supported by the Eurozone’s disappointing manufacturing/services data and the news that Cyprus’s long term sovereign credit rating was downgraded from CCC+ to CCC. Meanwhile, a decline in US jobless claims boosted the outlook of Canada
’s largest trading partner.
As of Friday, 22nd March 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1725, GBP USD exchange rate was 1.523, GBP AUD exchange rate was 1.4582, GBP NZD exchange rate was 1.8224, GBP CAD exchange rate was 1.5586, GBP JPY exchange rate was 143.8695, and GBP RUB exchange rate was 46.9964.