The Pound climbed higher against its peers yet again on Tuesday following the release of better than expected construction PMI data. The report beat economist predictions for a decline in construction activity and instead showed a significant leap in output. Large gains were refrained however due to earlier data which showed that UK retail sales increased less than forecast. The currency then eased its rise to trade close to its highest level since January as investors turned their attention to Wednesday’s session and data releases.
Currently the Pound is trading in the region of 1.2083 against the Euro and 1.6412 against the US Dollar.
The ‘Greenback’ was weaker against the Euro and continued to trade close to a 27-month low against the Pound as investors in the US embarked a bout of profit taking ahead of GDP, unemployment and trade balance data which is due for release later in the week. The Euro managed to climb higher following the release of positive news from Spain.
Currently the US Dollar is trading in the region of 0.6092 against the Pound and 0.7362 against the Euro.
The Euro made gains against the US Dollar after data released in Spain showed a decline in unemployment. The number of Spaniards out of work fell in November by 2.5k, a figure that took economists by surprise as they predicted that the number of Spaniards out of work would rise by 44.3k. Consumer confidence too came in far better than expected. Against the Pound the single currency remained close to its lowest level since January.
Currently the Euro is trading in the region of 0.8276 against the Pound and 1.3582 against the US Dollar.
The ‘Aussie’ resumed its decline following yesterday’s rally due to Reserve Bank of Australia Glenn Stevens saying that the currency is ‘still uncomfortably high’ and that a lower currency “is likely to be needed to achieve balanced growth in the economy.” The RBA chose to maintain interest rates at the record low level of 2.5%.
Currently the Australian Dollar is trading in the region of 0.5563 against the Pound, 0.6722 against the Euro and 0.9131 against the US Dollar.
The ‘Loonie’ fell to fresh three year lows against the Pound and its US relation as speculation mounts that the Bank of Canada could choose to cut interest rates at Wednesday’s policy meeting. Against the Euro the currency is trading close to a three year low.
Currently the Canadian Dollar is trading in the region of 0.5712 against the Pound, 0.6902 against the Euro and 0.9375 against the US Dollar.