Pound Sterling GBP/EUR
The Pound climbed to 1.21 against the Euro as speculation increased that the UK economy will outpace its European rivals in 2014. The Bank of England is due to announce their latest interest rate decision on Thursday.
Currently the Pound is trading in the region of 1.2110 against the Euro and 1.6457 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ was little changed against the Euro as investors look ahead to tonight’s Federal Reserve release of its December policy minutes. Strong jobs data caused the currency to firm but it wasn’t enough to override jitters ahead of the Fed release.
Currently the US Dollar is trading in the region of 0.6074 against the Pound and 0.7358 against the Euro.
The Euro has weakened against the Pound and declined against the majority of its other peers after unemployment data highlighted just how weak the single currency region’s economic recovery has been. Unemployment in Italy hit a new record high. The currency briefly found support from positive retails sales data. Tomorrow sees the ECB make its latest interest decision and the release of Eurozone business and consumer confidence reports.
Currently the Euro is trading in the region of 0.8255 against the Pound and 1.3587 against the US Dollar.
Australian Dollar AUD/EUR
Early in the session the ‘Aussie’ fell against the majority of its most traded peers due to high speculation that the US Federal Reserve will continue to cut its stimulus programme which has bolstered commodity and emerging market currencies. The currency was also weakened by data which showed that construction activity in Australia declined in December. The currency recovered in the afternoon against the Euro following the release of disappointing unemployment figures in the Eurozone.
Currently the Australian Dollar is trading in the region of 0.5411 against the Pound, 0.6553 against the Euro and 0.8906 against the US Dollar.
Canadian Dollar CAD/EUR
The Canadian Dollar tumbled against all of its most traded peers after Bank of Canada Governor Stephen Poloz suggested that the Canadian Central Bank could implement an interest rate cut in the near future to stave off deflation. Adding to the currency’s weakness was a separate report released yesterday which showed that the nation’s trade deficit widened by nine times what was forecast by economists.
Currently the Canadian Dollar is trading in the region of 0.5618 against the Pound, 0.6808 against the Euro and 0.9250 against the US Dollar.