Pound Sterling GBP/EUR
Sterling spent Thursday’s session softer against the Euro despite the release of negative data out of Greece and the threat of political instability returning to Italy. The GBP/EUR currency pair dipped below the high of 1.22 it achieved on Wednesday after the Bank of England increased its growth forecasts for the UK economy. Sterling could regain some ground on Friday if a construction output report comes in positively.
Currently the Pound is trading in the region of 1.2166 against the Euro and 1.6633 against the US Dollar.
US Dollar USD/EUR
The US Dollar fell to a three-week low against the Euro and was weaker against the Pound following the release of data out of the USA which showed that the number of people claiming unemployment benefits rose and as retail sales fell unexpectedly in January. Concerns over whether the USA’s economic recovery is faltering sent the Dollar lower.
Currently the US Dollar is trading in the region of 0.6012 against the Pound and 0.7316 against the Euro.
The Euro strengthened against the majority of its most traded peers despite the release of data which showed that unemployment rose to a new record high in Greece and as inflation eased in Germany. The currency regained ground after an ECB policy maker said that the Central Bank was considering the implementation of negative rates in order to stave off the risks posed by deflation. The Euro could fall on Friday if GDP figures come in worse than forecast.
Currently the Euro is trading in the region of 0.8224 against the Pound and 1.3677 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ tumbled against the Euro and other major peers on Thursday after data showed unemployment in the South Pacific nation rose to a 10-year high of 6% in January. According to the Australian Statistics Bureau, employers cut 3,700 jobs last month, a figure well below the forecast for the creation of 15,000 new positions. The currency was also weakened by a report by the International Monetary Fund which said that the currency is overvalued by around 10%.
Currently the Australian Dollar is trading in the region of 0.5399 against the Pound, 0.6565 against the Euro and 0.8979 against the US Dollar.
Canadian Dollar CAD/EUR
The ‘Loonie’ fell against the Euro but its losses were restrained as investors raised their bets that the currency’s recent fall has been excessive. Comments by Finance Minister Jim Flaherty that Canada will have a budget surplus also offered some support.
Currently the Canadian Dollar is trading in the region of 0.5467 against the Pound, 0.6654 against the Euro and 0.9094 against the US Dollar.