The Pound softened to a four-day low against the single currency Euro but advanced to a two-week high against the US Dollar. The currency found support from improved house price data and a consumer confidence report released earlier in the session. It then went into retreat against the single currency following the publication of better-than-expected inflation data. Next week sees the release of PMI data which is forecast to add further support to the UK economic recovery.
Currently the Pound is trading in the region of 1.2129 against the Euro and 1.6731 against the US Dollar.
US Dollar USD/EUR
The US Dollar fell to its lowest-level of the year so far against the Euro and weakened against a number of peers as GDP data disappointed the markets. Other reports such as the Chicago PMI and home sales did little to bolster demand for the US currency. U.S. gross domestic product rose 2.4% in the fourth quarter, slightly below expectations for a 2.5% expansion, after a 3.2% increase in the three months to September.
Currently the US Dollar is trading in the region of 0.5977 against the Pound and 0.7248 against the Euro.
The Euro pushed higher against a number of its peers after the single currency found support from a preliminary report which showed that inflation in the Eurozone remained unchanged at 0.8%. The figure was better than economist forecasts for a fall to 0.7%. The report eased pressure on the European Central Bank to take action at next week’s policy meeting. A separate report showed that unemployment across the region stabilised at 12%. Italy however saw its unemployment rate rise to a new record high.
Currently the Euro is trading in the region of 0.8244 against the Pound and 1.3797 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ weakened for a fourth day against most of its major peers after the Chinese Yuan made its biggest decline against the US Dollar in nine years. The currency also remains under pressure from falling iron ore prices and from yesterday’s disappointing business investment data.
Currently the Australian Dollar is trading in the region of 0.5345 against the Pound, 0.6476 against the Euro and 0.8936 against the US Dollar.
Canadian Dollar CAD/EUR
The ‘Loonie’ was softer against the Euro due to the single currency receiving strong support following the publication of better-than-expected inflation data. The currency did however tick higher against the US Dollar after Canadian GDP data came in better-than-forecast. GDP grew at an annualised pace of 2.9% in the final quarter and beat the previous quarter’s growth rate of 2.7%. Economists had been forecasting growth of 2.6%.
Currently the Canadian Dollar is trading in the region of 0.5397 against the Pound, 0.6530 against the Euro and 0.9028 against the US Dollar.