The Pound leapt higher against all of its major peers after data showed that the UK’s service sector expanded at its fastest pace in 16 years. The data added further support to expectations that the UK is on track to emerge as one of the best performing Western economies. It received further support after an independent economic institution raised its growth forecasts for the country.
Currently the Pound is trading in the region of 1.887 against the Euro and 1.6058 against the US Dollar.
The ‘Greenback’ made gains against the Euro after the EU cut its growth forecast and was able to make further gains after the latest ISM PMI data came in better-than-forecast. The improved data was likely to have increased speculation that the Federal Reserve will taper earlier rather than later after it said any decision will depend on the strength of the US economy.
Currently the US Dollar is trading in the region of 0.6227 against the Pound and 0.7403 against the Euro.
The Euro was broadly weakened after the EU cut its growth forecast from its initial estimate of 1.2% in 2014 to 1.1% and has increased its expectations for regional unemployment to climb to 12.2% instead of its previous prediction of 12.1%. Confidence is faltering in the region and speculation is mounting that the European Central Bank will introduce new stimulus measures in order to get the economy back onto the path of recovery.
Currently the Euro is trading in the region of 0.8412 against the British Pound and 1.3508 against the US Dollar.
Early in Tuesday’s session the ‘Aussie’ fell against the majority of its most traded peers after the Reserve Bank of Australia decided to maintain interest rates at the already record low level of 2.5% and as governor Glenn Stevens said that the currency is ‘uncomfortably high’. As the session progressed news that the EU had cut its growth forecasts saw the Australian currency edge higher against the single currency. It remained weak against the Pound however after PMI data showed that activity reached its highest level since 1996.
Currently the Australian Dollar is trading in the region of 0.5909 against the Pound, 0.7024 against the Euro and 0.9489 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ made gains against its ‘Aussie’ relation but was softer against the Pound as investors wait for tonight’s unemployment data out of New Zealand. The overall jobless rate is expected to fall from 6.4% to 6.2%. As with the majority of other currencies the ‘kiwi’ jumped higher against the Euro after the EU cut its forecasts for the Eurozone economy.
Currently the New Zealand Dollar is trading in the region of 0.5172 against the Pound, 0.6148 against the Euro and 0.8306 against the US Dollar.
The ‘Loonie’ was weaker against most of its peers but as with the other majors made gains against the Euro after the single currency tumbled. The Canadian Dollar had been weakened the nation’s Central Bank cut its growth forecast and as crude oil, its biggest export hit its lowest level since June.
Currently the Canadian Dollar is trading in the region of 0.5968 against the Pound, 0.7095 against the Euro and 0.9584 against the US Dollar.