The Pound strengthened against both the Pound and Euro with the currency hitting a nine-month against the American currency. The mood of the day was dominated by the appeal of safe haven currencies as political concerns in Italy and the US weighed upon sentiment. The UK currency meanwhile was bolstered by stronger-than-expected house price data. House prices rose to their highest level in six years.
Currently the Pound is trading in the region of 1.1954 against the Euro and 1.6138 against the US Dollar.
The ‘Greenback’ is near to an eight-month low against the Pound and spent much of the session under pressure against the Euro as concerns over a possible closure of the US government increased. The midnight deadline for the US Currency to make a deal for a new budget is fast approaching. The currency found little support after the latest Chicago manufacturing Index came in better-than-expected. Depending on what happens tonight the Dollar is likely to weaken further.
Currently the US Dollar is trading in the region of 0.6196 against the Pound and 0.7407 against the Euro.
The Euro spent much of the session weaker against its major peers as political turmoil in Italy caused investors to seek safety elsewhere. Worse-than-expected data out of China, and comments made by economists that the Eurozone’s unemployment looks set to remain at record highs also weighed upon the currency. The Organisation for Economic Cooperation and Development expects the jobless rate in nations such as Greece and Spain to remain above 25%.
Currently the Euro is trading in the region of 0.8365 against the British Pound and 1.3500 against the US Dollar.
The ‘Aussie’ initially fell against the majority of its most traded peers due to release of weaker-than-expected data out of China. The Asian nation is Australia’s biggest trading partner so any weakness in its economy has a negative impact on the ‘Aussie’. Economists had been expecting China’s purchasing managers index to rise to 51.2, instead it only edged upwards to 50.2. As the session wore on the currency recovered its losses as pressure piled up on the US Dollar.
Currently the Australian Dollar is trading in the region of 0.5771 against the Pound, 0.6899 against the Euro and 0.9337 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ fell against most of its peers as concerns over the US budget damaged risk appetite. The currency managed to recover some of its losses however after data showed that business confidence in New Zealand climbed to a new five-year high.
Currently the New Zealand Dollar is trading in the region of 0.5129 against the Pound, 0.6131 against the Euro and 0.8278 against the US Dollar.
The ‘Loonie’ made gains against many of its peers after data showed that the nation’s economy expanded more than expected. GDP expanded by 0.6% in July, reversing the previous contraction of 0.5% and beating expectations for a figure of 0.5% growth. Year-on-year the Canadian economy grew by 1.4% rather than the 1.3% forecast.
Currently the Canadian Dollar is trading in the region of 0.6013 against the Pound, 0.7188 against the Euro and 0.9704 against the US Dollar.