After a bullish few days the Pound declined on Friday in response to a surprising fall in UK consumer confidence and the news that the UK’s budget deficit swelled. However, while Sterling trimmed gains the British currency is still poised to record five-day gains against the US Dollar and Euro.
GBP/EUR is trading in the region of 1.1968 and GBP/USD is trading in the region of 1.6377
Stronger-than-forecast growth data for the US validated the Federal Reserve’s decision to trim stimulus and helped the safe-haven currency consolidate gains against the majority of its most traded currency counterparts before the weekend.
USD/GBP is trading in the region of 0.6106 and USD/EUR is trading in the region of 0.7322
Early into European trading the Euro was struggling as investors digested the news that Standard & Poor’s had cut the European Union’s credit rating. However, after consumer confidence in the Eurozone improved by more than forecast the Euro edged higher against the Pound.
EUR/GBP is trading in the region of 0.8358 and EUR/USD is trading in the region of 1.3687
The ‘Aussie’ ends the week locked in a bearish relationship with its rivals. Speculation regarding the prospect of the Reserve Bank of Australia cutting interest rates further and the possibility of the Fed continuing to trim stimulus in the New Year are likely to keep pressure on the Australian Dollar over the weekend.
AUD/GBP is trading in the region of 0.5442, AUD/EUR is trading in the region of 0.6511 and AUD/USD is trading in the region of 0.8893
New Zealand Dollar
In spite of an impressive domestic credit card spending report the ‘Kiwi’ weakened against the Euro as the common currency was boosted by strong consumer sentiment data for the Eurozone. The New Zealand Dollar also recorded a five-day decline of 0.9 per cent against its US counterpart.
NZD/GBP is trading in the region of 0.5002, NZD/EUR is trading in the region of 0.5982 and NZD/USD is trading in the region of 0.8178
While the ‘Loonie’ advanced in response to rising oil prices, the currency went on to drop against its peers in response to concerning inflation figures. Canadian inflation remained well below the Bank of Canada’s target in November, increasing the likelihood of the central bank holding rates lower for longer.
CAD/GBP is trading in the region of 0.5707, CAD/EUR is trading in the region of 0.6831 and CAD/USD is trading in the region of 0.9344