The Pound is on track to end the week making a weekly loss against both the Euro and US Dollar despite the release of negative data out of the US and Europe. Earlier in the session the Pound rallied briefly following the release of GDP data which showed that the UK economy expanded at its fastest pace since 2010.
Currently the Pound is trading in the region of 1.1719 against the Euro and 1.6178 against the US Dollar.
The ‘Greenback’ spent much of the morning weaker against the Euro but following the release of the latest US durable goods data in the afternoon it rallied to edge higher against the single currency. Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts as demand for riskier assets waned on fears that the global economy is showing signs of a slowdown.
Currently the US Dollar is trading in the region of 0.6181 against the Pound and 0.7243 against the Euro.
The Euro softened as the session neared its end but remained close to a two-year high against the US Dollar and was firmer against the Pound. The currency managed to shrug off declines despite Business confidence in Germany declined in October, taking economists by surprise after rising for consecutive months previously. According to the data released by the Munich based CESifo Group, business confidence fell to 107.4 in October, down from the previous reading of 107.7 and below forecasts for a rise to 108.0.
Currently the Euro is trading in the region of 0.8533 against the British Pound and 1.3805 against the US Dollar.
The ‘Aussie’ continued to weaken against the Pound and the rest of its most traded peers as investors took advantage of the strong gains seen earlier in the week. Concerns over the state of the global economy have also weighed upon the currency with many investors seeking safer options elsewhere.
Currently the Australian Dollar is trading in the region of 0.5931 against the Pound, 0.6950 against the Euro and 0.9595 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ is set to make its longest run of weekly declines against the Australian Dollar in more than a year as the smaller Oceanic nation’s Central Bank signalled hesitation to raise borrowing costs. The currency fell after Reserve Bank of New Zealand Governor Graeme Wheeler said that he was concerned that higher interest rates would drive up the value of the currency and damage exports.
Currently the New Zealand Dollar is trading in the region of 0.5134 against the Pound, 0.6017 against the Euro and 0.8306 against the US Dollar.
The ‘Loonie’ fell to a seven-week low against its US relation after the Bank of Canada embraced a more accommodative monetary policy and as the value of crude oil, the nation’s biggest export tumbled to its weakest level since June, it also ended the week making a loss against the Euro.
Currently the Canadian Dollar is trading in the region of 0.5917 against the Pound, 0.6935 against the Euro and 0.9574 against the US Dollar.