Published: 30 Jul at 11 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Russia, South Africa,
The UK economy saw Mortgage Approvals data published on Tuesday that proved highly favourable; approvals jumped up to 67.2K, bypassing forecasts of only 63.0K. Furthermore, Net Lending Secured on Dwellings reached 2.1B despite economists forecasting only a 1.9B figure. The Pound however was unaffected by the positive mortgage data yesterday as the currency market is looking towards the August Bank of England (BoE) meeting for some guidance on fiscal policy and the Pound’s trajectory. The Pound is currently trading against the Euro (EUR) at 1.2632 and the US Dollar at 1.6933.
Wednesday will be an influential day for the Euro (EUR) with the publication of Eurozone Economic, Industrial and Services Confidence data. Moreover this afternoon will see the release of German Consumer Price Index figures which are currently forecast to rise by 0.8%. The Eurozone recovery remains fragile, with economists speculating that further measures will need to be introduced by the European Central Bank (ECB).Industry expert Robin Marshall commented: ‘There is a strong perception in the market that the ECB will have to ease policy further.’ The Euro is at present trading against the US Dollar (USD) at 1.3404.
US Dollar (USD)
The US Dollar is seeing near eight-week highs in the currency market in the latter half of the week, following a string of positive US data. In light of such positive figures—namely employment and consumer confidence—the US Dollar is likely to maintain its upward trajectory. Economist Etsuko Yamashita stated: ‘The Fed [Federal Reserve] will continue to taper as usual. The Dollar should keep rising.’ The Federal Reserve will convene today to discuss monetary policy which could have a massive effect on the US Dollar. The ‘Buck’ is currently trading at 0.5906 against the Pound (GBP) and at 0.7460 versus the Euro (EUR).
Canadian Dollar (CAD)
The Canadian Dollar (CAD) has tumbled, falling to 0.9210 against the US Dollar (USD), after weeks of trading in the 94 US cents region. The ‘Loonie’ is currently being tested by geopolitical tensions, with sanctions being set by the EU and the US against Russia, following the recent downing of Malaysian Airlines Passenger flight MH17. Canada
will publish both its Industrial Product Price and Raw Materials Price Index today; however they are unlikely to affect the ‘Loonie’ significantly. Thursday will be far more influential for the Canadian Dollar as Canada’s Gross Domestic Product figures and Average Weekly Earnings data are both scheduled for release.
Australian Dollar (AUD)
Wednesday has seen the Australian Dollar (AUD) trading slightly softer against the US Dollar (USD) after the US produced favourable data yesterday by way of a surge in the Consumer Confidence index. Currency expert Greg Moore stated: ‘Broad US Dollar strength was the dominant theme in foreign exchange markets overnight.’ Australia
will publish Building Approvals figures on Thursday, whilst Friday will see the nation’s Performance of Manufacturing Index, Producer Price Index and Commodity Index. The ‘Aussie’ is trading at 0.9378 versus the ‘Buck’.
The New Zealand Dollar has sank to below 85 US cents on Wednesday, varying between the day’s high of 0.8505 and session low of 0.8497. The catalyst for the flop came in the form of the Fronterra Co-Operative Group slashing their allowance used to pay dairy farmers, resulting in the commodity’s prices sinking lower than anticipated. Representative for the Bank of New Zealand Raiko Shareef commented: ‘We have had a series of quite sharp setbacks for the ‘Kiwi’.’ The New Zealand Dollar is trading at 0.8508 at present.
South African Rand (ZAR)
The Rand (ZAR) has experienced a string of challenges this year following a prolonged period of mining strikes that have damaged South Africa
’s production levels and economic output. South Africa published Unemployment Rate figures on Tuesday, which showed that joblessness reached 25.5% in the second quarter. The Rand however is struggling against the rallying US Dollar (USD); the currency pairing is likely to see fluctuation later this session as the US announces Gross Domestic Product figures, which are currently forecast to impress. The USD to ZAR exchange rate is presently residing at 10.5980.
As of Wednesday, 30th July 2014, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.2624, GBP USD exchange rate was 1.691, GBP AUD exchange rate was 1.8137, GBP NZD exchange rate was 1.9929, GBP CAD exchange rate was 1.844, GBP RUB exchange rate was 60.2093, and GBP ZAR exchange rate was 18.0381.