Pound Sterling GBP/EUR
The Pound regained lost ground on Tuesday after a report showed that inflation fell to the Bank of England’s target of 2%, the first time it has done so in four years. As a result of the inflation report Sterling climbed back above the 1.20 range. The inflation decline increased confidence in the UK government’s economic policy.
Currently the Pound to Euro exchange rate is in the region of 1.2026 and the Euro to US Dollar exchange rate is trading around 1.6454.
US Dollar USD/EUR
The ‘Greenback’ softened against its peers late in Tuesday’s session despite the news that Washington based Commerce Department releasing a report which showed that retail sales in the country rose by a seasonally adjusted 0.2% in December, beating forecasts for a figure of 0.1%.
Currently the US Dollar is trading in the region of 0.6077 against the Pound and 0.7310 against the Euro.
The Euro was softer later in the session despite finding support from comments by an ECB governing council member who said that they saw no need for a change to monetary policy in order to boost the region’s economy. Industrial production also offered support as it came in far above economist forecasts.
Currently the Euro is trading in the region of 0.8312 against the Pound and 1.3677 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ retreated from yesterday’s highs as investors look ahead to the release Chinese data on Wednesday and as expectations remain high that the US Federal Reserve will continue to taper its monetary easing programme. The currency is likely to fall further as the week progresses as investors expect Thursday’s data will show that the nation’s unemployment rate remained at a four-year high.
Currently the Australian Dollar is trading in the region of 0.5462 against the Pound, 0.6569 against the Euro and 0.8987 against the US Dollar.
Canadian Dollar CAD/EUR
The Canadian Dollar is trading close to its lowest level since October 2009 against its US counterpart and remains at multi-year lows against the Pound and Euro as the currency remains under pressure following last week’s poor jobs report. Canada’s unemployment rate jumped from 6.9% to 7.2%.
Currently the Canadian Dollar is trading in the region of 0.5557 against the Pound, 0.6684 against the Euro and 0.9144 against the US Dollar.