Pound Sterling (GBP)
The Pound made its first gains in five days against the US Dollar and pushed higher against the Euro as economists remained optimistic over the UK economic recovery. Despite the release of weaker than expected budget surplus and retail sales data the markets supported Sterling as optimism remains high that the UK economy will continue to improve. Next week we can expect the Pound to push even higher if reports match expectations that the economy grew for a fourth consecutive quarter and home loans rose to their highest number since 2007.
Currently the Pound is trading in the region of 1.2150 Against the Euro and 1.6704 Against the US Dollar
US Dollar (USD)
The US Dollar softened against the Euro and other major peers on Friday after data showed that the number of existing home sales in the US fell to the lowest level in more than a year in January. The currency’s losses were restrained due to economists blaming the recent bout of extreme winter weather and as demand for safer currencies remains high after a tentative truce was signed in Ukraine.
Currently the US Dollar is trading in the region of 0.5986 Against the Pound and 0.7273 Against the Euro.
The Euro (EUR)
The Euro weakened against the Pound and US Dollar in a relatively quiet session for the single currency. What data there was released matched economist forecasts. Italy posted its latest inflation rate data. Year-on-year inflation was at 0.7%, unchanged from the previous months figure and matched expectations. On a monthly basis it stood at 0.2%, again meeting forecasts. The currency is likely to fall further next week if inflation data comes in below expectation. Investors will grow increasingly nervous over the threat of deflation in the region if it comes in worse than expected.
Currently the Euro is trading in the region of 0.8229 Against the Pound and 1.3748 Against the US Dollar
Australian Dollar (AUD)
The ‘Aussie’ was on track to make its first weekly decline in a month after Deutsche Bank forecasted that the currency may tumble by as much as 20% in two years. The ‘Aussie’ fell to a one-week low yesterday after manufacturing data out of China disappointed. Another factor weighing upon the currency was the fall in the value of iron ore, Australia’s biggest commodity export.
Currently the Australian Dollar is trading in the region of 0.5375 Against the Pound, 0.6523 Against the Euro and 0.8965 Against the US Dollar
The ‘Loonie’ fell against the majority of its most traded peers after retail sales fell more than forecast. Sales tumbled by a whopping 1.8% on the month in December, well below the reading of -0.4% expected by economists.
Currently the Canadian Dollar is trading in the region of 0.5373 Against the Pound, 0.6529 Against the Euro and 0.8975 Against the US Dollar