Pound Sterling GBP/EUR
The Pound climbed to a one-year high against the Euro after the Bank of England maintained interest rates at the record low level of 0.5%. The currency also made gains after a separate report showed that the UK’s trade deficit narrowed in November. The continuingly improving state of the UK economy has created speculation that interest rates will be increased sooner-than-previously expected.
Currently the Pound is trading in the region of 1.2114 against the Euro and 1.6463 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ climbed to a one month high against the Euro following the release of data which showed that the number of US citizens claiming unemployment benefits fell. The currency also found support from increased speculation that the Federal Reserve will end its monetary easing programme before the end of the year and from a separate report which showed that consumer confidence increased at the start of the year.
Currently the US Dollar is trading in the region of 0.6073 against the Pound and 0.7360 against the Euro.
The Euro softened against many of its peers after European Central Bank President Mario Draghi said that he will keep interest rates low for an extended period despite recent data showing that inflation fell across the Eurozone last month. Interest rates were maintained at the record low level of 0.25%.
Currently the Euro is trading in the region of 0.8253 against the Pound and 1.3587 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’weakened for another day against the Pound and US Dollar as speculation rises that the US Federal Reserve will continue tapering its stimulus programme. Investors are looking ahead to Friday’s US payrolls data for guidance. The currency was also weighed down by the release of data in China which showed that the nation’s inflation rate came in below forecasts.
Currently the Australian Dollar is trading in the region of 0.5397 against the Pound, 0.6539 against the Euro and 0.8887 against the US Dollar.
Canadian Dollar CAD/EUR
The Canadian Dollar fell against the Euro and other peers after Bank of Canada governor Stephen Poloz said that he is in no rush to increase interest rates to stave off the risk of deflation. Crude oil futures also fell, adding to the pressure piling on the ‘Loonie’.
Currently the Canadian Dollar is trading in the region of 0.5596 against the Pound, 0.6782 against the Euro and 0.9214 against the US Dollar.