The Pound halted two days worth of declines against the Euro on Monday after the governor of the Bank of England Mark Carney said that the Central Bank will continue to support the UK economic recovery. Against other peers including the US Dollar the Pound is little changed due to a lack of domestic data releases. The currency is likely to experience some volatility on Wednesday when a report is expected to show that the economy expanded at a slower rate in the fourth quarter of 2013.
Currently the Pound is trading in the region of 1.2108 against the Euro and 1.6615 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ softened against many of its peers on Monday after data showed that the USA’s service sector slowed in February. Markit’s preliminary service sector purchasing managers index declined to 52.7 in February, down from the previous month’s figure of 56.7. The figure may have softened but the sector was still expanding. Any figure above 50 indicates expansion. The fall was being blamed on the recent bout of harsh winter weather.
Currently the US Dollar is trading in the region of 0.6020 against the Pound and 0.7291 against the Euro.
The Euro was trading softer against the US Dollar as concerns over emerging markets and the health of China’s economy weighed on demand for riskier assets. Earlier in the session the single currency made gains after a report showed that business sentiment in Germany climbed to its highest level since mid 2011. Comments made by ECB President Mario Draghi weighed upon the currency after he announced that the bank could add to stimulus measures to help the region’s economy.
The Euro could make gains on Tuesday if GDP data out of Germany and business confidence data out of France come in positively.
Currently the Euro is trading in the region of 0.8257 against the Pound and 1.3718 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ remained ranged bound against several peers after being continued to be weighed upon by a decline in the price of iron ore and the release of weak data out of China, Australia’s biggest trading partner.
Currently the Australian Dollar is trading in the region of 0.5417 against the Pound, 0.6560 against the Euro and 0.9001 against the US Dollar.
Canadian Dollar CAD/EUR
The ‘Loonie’ made gains against the Euro and US Dollar as investors turned their attention to Canadian reports on trade and GDP growth due out later in the week. Friday sees the release of the latest quarterly GDP data. The currency also found support from last week’s report which showed that inflation in the country increased by 1.5% last month compared to the previous year.
Currently the Canadian Dollar is trading in the region of 0.5436 against the Pound, 0.6578 against the Euro and 0.9033 against the US Dollar.