The Pound fell to a three-week low against the US Dollar and weakened against the Euro after the currency was hit by the release by a string of negative data reports. Industrial and manufacturing output fell more than economists expected in August casting doubt over the strength of the UK economic recovery. The nation’s trade deficit also narrowed less than expected.
Currently the Pound is trading in the region of 1.1783 against the Euro and 1.5930 against the US Dollar.
The ‘Greenback’ climbed to a three-week high against the US Dollar and climbed higher against the Euro as investors approved the nomination of Janet Yellen to replace Ben Bernanke as the new head of the Federal Reserve.
Currently the US Dollar is trading in the region of 0.6259 against the Pound and 0.7394 against the Euro.
The Euro strengthened against the Pound after data showed that industrial output in Germany jumped by 1.4% in August. Against the US Dollar the Euro fell as demand for the Dollar grew as investors continued to be spooked by the ongoing federal shutdown and as investors took a wait and see approach to this evening s release of the Federal Reserve’s September policy meeting minutes.
Currently the Euro is trading in the region of 0.8479 against the British Pound and 1.3515 against the US Dollar.
The ‘Aussie’ climbed close to its highest level in more than three-weeks as investors expect the nation’s latest jobs data to show signs of significant improvement. The report due for release tomorrow is expected to show that payrolls climbed last month by the biggest margin recorded in five months. Against the US Dollar the ‘Aussie’ was softer as concerns over the ongoing government shutdown and encroaching debt ceiling deadline improved demand for the safe haven ‘Greenback’.
Currently the Australian Dollar is trading in the region of 0.5912 against the Pound, 0.6984 against the Euro and 0.9445 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ was little moved against most of its peers in the morning as the markets continue to concentrate their gaze upon the situation in the United States. The currency is likely to soften after ANZ senior manager in the foreign exchange market, Sam Tuck, said that if America defaults investors will opt to sell off the New Zealand Dollar. By the afternoon the currency jumped by almost 1% against the Pound after data weighed heavily upon the UK currency.
Currently the New Zealand Dollar is trading in the region of 0.5196 against the Pound, 0.6139 against the Euro and 0.8302 against the US Dollar.
The ‘Loonie’ made gains against the Pound due to the release of lacklustre data but fell for a third day against the US Dollar as the US government shutdown dragged on for another day. It also dropped against the Euro due to the positive German industrial production data.
Currently the Canadian Dollar is trading in the region of 0.6033 against the Pound, 0.7127 against the Euro and 0.9639 against the US Dollar.