Pound Sterling GBP/EUR
The Pound jumped to a two-week high against the US Dollar and climbed to its highest-level in three weeks against the Euro after the Bank of England revised up its forecast for economic growth in the UK and as it altered its forward guidance programme. The Central Bank also said that it would not raise interest rates until 2015 at the earliest.
Currently the Pound is trading in the region of 1.2202 against the Euro and 1.6583 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ strengthened against the Euro after a European Central Bank policy maker suggested that the bank is seriously considering introducing negative deposit rates. The news spooked investors and sent them flocking to the safe haven US Dollar.
Currently the US Dollar is trading in the region of 0.6030 against the Pound and 0.7359 against the Euro.
The Euro plunged against the majority of its most traded peers after a ECB policy maker said that the Central Bank was considering implementing negative rates. Political uncertainty in Italy also weighed upon the single currency as speculation grows that Prime Minister Enrico Letta could be ousted by Matteo Renzi. A weaker than forecast industrial production report also dragged on the currency.
Currently the Euro is trading in the region of 0.8193 against the Pound and 1.3586 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ soared to a two-month high against the Euro after the South Pacific currency found support from positive economic data out of China and as a ECB policy maker suggested that the Eurozone Central Bank could introduce negative rates to stave off the threat of deflation.
Currently the Australian Dollar is trading in the region of 0.5448 against the Pound, 0.6649 against the Euro and 0.9035 against the US Dollar.
Canadian Dollar CAD/EUR
The Canadian Dollar edged higher against the Euro and US Dollar in a quiet session for the North American currency. The next important piece of data for the ‘Loonie’ is due Thursday as is expected to show that house prices in the nation fell in December.
Currently the Canadian Dollar is trading in the region of 0.5486 against the Pound, 0.6696 against the Euro and 0.9097 against the US Dollar.