The Pound spent a second day trading at a two-month low against the Euro and was weaker against the US Dollar as the markets grew jittery ahead of the Federal Reserve’s two day long policy meeting. Positive mortgage approval data earlier in the session briefly bolstered the currency before it went back onto the back foot once again. With no more data releases due until Friday the Pound is likely to be heavily influenced by events in the USA.
Currently the Pound is trading in the region of 1.1683 against the Euro and 1.6082 against the US Dollar.
The ‘Greenback’ strengthened against most of its peers late in the session as investors prepared for the start of the Federal Reserve’s policy meeting. The currency strengthened as traders embarked on a bout of profit making and as they manoeuvred their positions ahead of the Fed statement due later in the week. The Central Bank is expected to announce that it will delay tapering its monetary easing policy until next year.
Currently the US Dollar is trading in the region of 0.6217 against the Pound and 0.7264 against the Euro.
The Euro strengthened after European Central Bank Governing Council member Ewald Nowotny said that the European Central Bank was unlikely to cut its benchmark interest rate or the deposit rate at next week’s policy meeting. He also said the Central Bank had no instruments to use against the strong Euro. The currency also found support from a rise in retail sales in Spain. Sales increased for the first time in three years.
Currently the Euro is trading in the region of 0.8559 against the British Pound and 1.3765 against the US Dollar.
The ‘Aussie’ fell to its lowest level in nearly two weeks after the governor of the Australian Reserve Bank; Glenn Stevens said that the currency may be weaker in the future. The ‘Aussie’ dropped against all 16 of its major counterparts after Stevens said there will eventually be a tapering of U.S. stimulus that has debased the ‘Greenback’.
Currently the Australian Dollar is trading in the region of 0.5912 against the Pound, 0.6907 against the Euro and 0.9508 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ is trading lower against the US Dollar as investors remain jittery ahead of the two-day long Federal Reserve policy meeting. Concerns are also mounting that the data delayed by the recent US government shutdown will highlight a slowdown in the world’s largest economy.
Currently the New Zealand Dollar is trading in the region of 0.5132 against the Pound, 0.5996 against the Euro and 0.8254 against the US Dollar.
The ‘Loonie’ rose against the Pound and Euro after it received a boost from the expectations that the Fed will delay tapering its quantitative easing programme. The ‘Loonie’ also found support ahead of Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Tiff Macklem testifying to a House of Commons committee in Ottawa.
Currently the Canadian Dollar is trading in the region of 0.5958 against the Pound, 0.6961 against the Euro and 0.9583 against the US Dollar.