Published: 30 Jun at 6 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, South Africa,
Daily Currency Update
Considerable movement with the Pound to Canadian Dollar exchange rates have strengthened the ‚ÄėSterling‚Äô to 1.82, hitting a daily high but still standing at lower than predicted. Canada
‚Äôs GDP also came in at lower than expected, which in turn weakened the ‚ÄėLoonie‚Äô. The ‚ÄėAussie‚Äô has crossed into the 1.81 territory after the financial year ended weakly for the Australian sharemarket. CMC chief market strategist Michael McCarthy chalked the losses up to ‚Äėfalls in mining stocks‚Äô, adding that ‚Äėinvestors realise losses to offset gains elsewhere‚Äô. Also of note is the Pound‚Äôs continued stance above the 1.24 level with the Euro, with highs crossing the border into the 1.25 zone. Small movements suggest the value is set to reach 1.25 indefinitely if fluctuations continue.
The US Dollar has weakened against the Pound today in spite of comparatively upbeat US fundamentals. The USD/GBP pairing has consolidated recent losses and is trading close to an over five-year low. The pairing is fluctuating between 1.70 and 1.71 as the odds of the Federal Reserve leaving interest rates on hold increased following last week‚Äôs poor US data. Today‚Äôs speech from Federal Reserve Bank of San Francisco President John Williams could shed more light on the timeline for increasing interest rates. The ‚ÄėBuck‚Äô continues to fluctuate against the Canadian Dollar, currently settling itself halfway between its daily high and low at a comfortable but likely-to-change 1.0667, dropping from the 1.0696 level achieved between 1-2pm (following the release of Canadian GDP data) but rising from the 1.0655 it stood at between 2-3pm. The volatility of the US Dollar continues to be derived from last week‚Äôs concerning US first quarter growth data, which sits at odds with the nation‚Äôs stronger-than-predicted inflation data published earlier this month.
The Euro remained stronger against the Pound and US Dollar following the release of on-target Eurozone CPI data. The region‚Äôs core consumer price index came in slightly above expected levels, but price pressures remain subdued. The Euro to New Zealand
Dollar exchange rate was up 0.5% on the day after benefiting from disappointing business confidence data for the Eurozone, and the ‚Äėsingle currency‚Äô was standing its ground against several of its other main rivals in spite of the disappointing German retail sales data released this morning. The day‚Äôs high of 1.4574 has taken the Euro to AUD pairing to a comfortable 1.4523 level, after climbing away from a low of 1.4461. This week‚Äôs German unemployment change report for June could influence Euro movement as it is expected to show that the jobless level decreased by 10K.
Slight drops against most of the Australian Dollar‚Äôs major peers today do not appear to be significant enough to be a cause for concern and are reflective of Commonwealth Bank of Australia
currency strategists‚Äô predictions that ‚Äėevents this week were unlikely to be ‚Äúgame changers‚ÄĚ for the Australian Dollar‚Äô. However, the overall weakening of the ‚ÄėAussie‚Äô comes as a response to Australia‚Äôs new home sales data released this morning, which dropped significantly compared to last month‚Äôs figures. Losses were exacerbated by the Australian sharemarket‚Äôs disappointing figures at the end of the financial year.
New Zealand Dollar
Following the publication of data outlining a drop in building permits and a steep decline in business confidence data in May, the New Zealand Dollar continues to soften against most of the commonly-traded currencies, although against the Euro, the ‚ÄėKiwi‚Äô maintains a rise compared to its value in early June. Suggestions that today‚Äôs softening is merely a minor setback for the New Zealand Dollar are conflicted against the news that its value has continued to fall since June 26th and has shown no sign of strengthening.
Lower-than-expected results from Canada‚Äôs gross domestic product have been shrugged off by investors, seeing the ‚ÄėLoonie‚Äô unchanged in its rise against the ‚ÄėBuck‚Äô and recovering after a minor drop against the Euro and Sterling at the time of the release of the GDP data. Positive inflation data and oil prices have supported the Canadian Dollar in recent weeks and helped prevent it falling too steeply after the Canadian economy was shown to have expanded by less-than anticipated in April.
South African Rand
The Rand has seen a small decline against all of its major peers following a report detailing a 3-month low in South Africa
‚Äôs trade deficit due to a sharp fall in imports. Currently the Rand stands at 0.0940 against the US Dollar, compared to today‚Äôs high of 0.9460, and forecasts suggest that the Rand cold continue falling. Next to the Euro, the Rand has fallen from a daily high of 0.6930 to sink to a low of 0.686 not long after the release of the trade deficit data, suggesting investors are taking caution in light of the new figures.
As of Monday, 30th June 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2492, GBP USD exchange rate was 1.7103, GBP AUD exchange rate was 1.8136, GBP NZD exchange rate was 1.9521, GBP CAD exchange rate was 1.8252, and GBP ZAR exchange rate was 18.188.