The Pound spent most of the session firmer against the Euro and US Dollar after it found support from data which showed that the UK’s budget deficit narrowed in October. A separate report showed that new orders for UK factories climbed to its highest level in 8 years.
Currently the Pound is trading in the region of 1.1991 against the Euro and 1.6148 against the US Dollar.
The ‘Greenback’ fell against its peers following the release of mixed economic data. The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November, from 19.8 in October, expanding at the slowest pace in six months. Jobless claims data however came in better-than-expected. The mixed data added to confusion in the market as to when the Fed will cut its easing programme. Due to the Dollar’s fall it seems that a later cut is favoured.
Currently the US Dollar is trading in the region of 0. 6192 against the Pound and 0.7426 against the Euro.
The Euro was higher against the Dollar despite the release of negative data out of France and other Eurozone members. Late in the session data showed that confidence across the Eurozone fell more than forecast in November falling to -15.4, down from October’s reading of -15 and below economist expectations for a rise to -14.09. The fall in confidence was a result of the weakening economy and the ECB’s action of cutting interest rates to a new record low level of 0.25%.
Currently the Euro is trading in the region of 0.8338 against the Pound and 1.3470 against the US Dollar.
The ‘Aussie’ dropped against the US Dollar and most of its peers as investors raised their bets that the governor of the Reserve Bank of Australia, Glenn Stevens will use today’s speech to talk down the value of the currency. The RBA has signalled previously that it wants the ‘Aussie’ to fall in order to support exports.
Currently the Australian Dollar is trading in the region of 0.5723 against the Pound, 0.6864 against the Euro and 0.9245 against the US Dollar.
The ‘Loonie’ fell against its US relation and its other major peers after the governor of the Bank of Canada Stephen Poloz said that low interest rates should be sufficient until the economy shows signs of a robust recovery. Investors are expecting tomorrow’s consumer price index to come in below forecasts and show that inflation in the Canadian currency slowed.
Currently the Canadian Dollar is trading in the region of 0.5888 against the Pound, 0.7064 against the Euro and 0.9515 against the US Dollar.