The Pound made gains against all of its most traded peers after data showed that unemployment in the UK fell and as the Bank of England declared that the nation’s economy recovery is finally underway. The jobless rate fell to 7.6%, increasing investor speculation that the BOE could choose to raise interest rates and curb stimulus measures sooner than previously expected. The Bank also increased its growth forecasts which added to optimism and demand for the currency.
Currently the Pound is trading in the region of 1.1930 against the Euro and 1.5984 against the US Dollar.
The ‘Greenback’ fell against the Pound but was able to make gains against a weaker Euro following the release of worse than expected industrial output data from the faltering single currency region. The US currency softened against Sterling after the Pound received support from positive jobs data and as mortgage data showed that the number of new mortgage approvals in the US fell.
Currently the US Dollar is trading in the region of 0.6256 against the Pound and 0.7463 against the Euro.
The Euro fell against all of its peers after data showed that industrial production in the Eurozone fell in September, increasing concerns that the region’s economy is slowing. The currency fell further in the afternoon after an ECB governing council member warned that the bloc’s low interest rates come with risks that must be addressed.
Currently the Euro is trading in the region of 0.8382 against the Pound and 1.3398 against the US Dollar.
The ‘Aussie’ began the session trading close to its lowest level in eight-weeks against the US Dollar and was softer against the Euro. The currency continues to be weighed upon by increasing expectations that the US Federal Reserve could decide to taper its monetary easing programme as early as December. As the session progressed the currency advanced against the Euro following the release of disappointing industrial production data.
Currently the Australian Dollar is trading in the region of 0.5815 against the Pound, 0.6937 against the Euro and 0.9295 against the US Dollar.
The ‘Loonie’ was little moved after it edged higher from its weakest level in more than two-months against its US relation. The currency remains weaker as a result of the increased speculation that the Federal Reserve could choose to taper its monetary easing programme sooner than expected. A cut to the Fed programme will weaken the ‘Loonie’ and other commodity based currencies. Also weighing upon the currency was that Crude oil, Canada’s biggest export snapped two days of gains.
Currently the Canadian Dollar is trading in the region of 0.5967 against the Pound, 0.7117 against the Euro and 0.9537 against the US Dollar.