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US Dollar (USD) Rally Pause; Euro (EUR) Depreciating; Canadian Dollar (CAD) Flops

Published: 27 Aug at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, South Africa,

Pound (GBP)

The Pound (GBP) has made some gains versus the US Dollar (USD) on Wednesday, regardless of the disappointing revelation on Tuesday that the British Bankers Association (BBA) approved less mortgages than expected in July. The BBA Loans for Home Purchase figures only attained 42,792 in July, following June’s 43,180. Moreover economists had forecast 44,065 mortgages to be approved; the difference in applicants could show the tighter mortgaging policies imparted in April taking effect. The Pound is presently trading at 1.6569 versus the US Dollar.

Euro (EUR)

The Euro (EUR) is trending lower against other majors on Wednesday as investors sentiment is diminishing on the outlook for the Eurozone. As Quantitative Easing becomes closer to a reality in the Euro area, the Single Currency looks set to fall further. Royal Bank of Scotland representative Greg Gibbs stated: ‘The ECB’s preparedness to do large-scale asset purchases is now significant, and policy makers are looking for the ways in which they may be able to do that.’ The Euro is currently trending in the region of 0.3187 against the US Dollar (USD) and at 0.7956 in its currency pairing with the Pound (GBP).

US Dollar (USD)

The US Dollar (USD) has paused its rally against other majors, despite a fruitful day for figures on Tuesday. The US Durable Goods Orders rose far higher than expected, rocketing by 22.6% in July, in comparison to the 8.0% forecast. June’s figure attained a 2.7% growth, making July’s publication for the order of goods expected to last over three years even more impressive. The US will see the release of MBA Mortgage Applications which will shed some light on the current housing market situation. The ‘Buck’ has attained highs thus far today of 0.6048 against the Pound (GBP) and 0.7604 versus the Euro (EUR).

Canadian Dollar (CAD)

The Canadian Dollar (CAD) has fallen to its lowest level in the latter three months against its US Dollar (USD) counterpart, presently trading in the region of 0.9183. The Royal Bank of Canada are speculating that the ‘Loonie’ could be encouraged into its lowest trough against the ‘Buck’ since 2009. Analyst George Davis stated: ‘We look for a sneaky USD bid to result in another challenge of the C$1.1000 area toward the back end of the week.’

Australian Dollar (AUD)

The Australian Dollar (AUD) is currently trading at 0.5630 versus the Pound (GBP) and at 0.9328 against the US Dollar (USD). The Australian economy saw the Construction Work Done figures disappoint on Wednesday, showing a shrinkage of 1.2% in the second quarter—bypassing the prediction of only a 0.5% contraction—in comparison to the first quarter’s -0.4%. Despite a fall, some remain optimistic; economist Ben Jarman stated: ‘We are seeing more positive signs on the building side, we know that residential is coming through at a pretty decent rate, because we’ve had a pretty decent run up in building approvals for quite a while.’

New Zealand Dollar (NZD)

The New Zealand Dollar (NZD) has fallen in recent weeks following the slashing of milk prices which proved highly influential to the economy. However, Wednesday has seen positive news for the ‘Kiwi’ with New Zealand’s biggest dairy farmer Fronterra taking a 20% share in Beingmate one of China’s most influential dairy suppliers. The deal comes after China’s dairy shortage was made clear, and will be a positive boost for the New Zealand economy. The ‘Kiwi’ is trending at 0.5056 against the Pound (GBP).

South African Rand (ZAR)

The South African Rand (ZAR) saw a productive day on Tuesday with the South African economy failing to dip into recession in the second quarter as many speculated it might. Tuesday saw the economy expand by 0.6% quarter-on-quarter, in comparison to the 0.6% contraction the first quarter experienced. The Pound (GBP) is presently trading down against the Rand at 17.6159.

As of Wednesday, 27th August 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2564, GBP USD exchange rate was 1.6575, GBP AUD exchange rate was 1.7751, GBP NZD exchange rate was 1.9799, GBP CAD exchange rate was 1.8011, GBP CNY exchange rate was 10.1824, and GBP ZAR exchange rate was 17.5908.
Laura Parsons About Author: (360 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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