As UK unemployment unexpectedly dropped to an over four-year low the Pound advanced on the majority of its most traded rivals. The British currency gained 0.8 per cent against the Euro and moved away from a six-week low over the course of European trading.
Although ‘Greenback’ movement was slightly limited ahead of today’s influential Federal Open Market Committee announcement, the currency was able to strengthen against the safe-haven Yen. The US Dollar lost ground against both Sterling and the Euro as positive domestic data boosted both European assets.
While the Euro strengthened against some of its peers as a gauge of German business sentiment rose to a 20 month high, the common currency softened against a rallying Pound. Additional EUR/USD movement is likely to occur overnight as investors process the FOMC policy decision.
After advancing on its rivals overnight in response to comments issued by Reserve Bank of Australia Governor Glenn Stevens, the ‘Aussie’ trimmed gains in the European session. The Australian Dollar weakened against the Pound and Euro and fluctuated against the ‘Greenback’.
New Zealand Dollar
During Australasian trading the ‘Kiwi’ slumped as a report revealed that New Zealand had recorded a wider current account deficit than expected. The South Pacific currency slipped further against the Euro after Germany’s encouraging IFO reports were published.
The ‘Loonie’ lost ground against all but one of its major peers as Bank of Canada Governor Stephen Poloz asserted that the currency’s weaker exchange rate would do little to support local exporters. Although domestic wholesale sales surprised to the upside the Canadian Dollar was feeling the pressure ahead of the FOMC announcement.