Pound Sterling
The Pound fell to a two-month low against the US Dollar and weakened close to a weekly low against the Euro due to the release of data which showed that inflation in the UK slowed to its lowest level in more-than-a-year in October. The data eased pressure on the Bank of England to raise interest rates. Investor attention is now focused on Wednesday’s BoE policy meeting where policy makers are expected to hold rates at a record low and maintain its stimulus programme.
Currently the Pound is trading in the region of 1.1906 against the Euro and 1.5918 against the US Dollar.
US Dollar
The ‘Greenback’ fell against the Euro after data showed that optimism amongst small American businesses fell in October as a result of the 16-day long federal government shutdown. Against the rest of its peers the US Dollar gained ground on the back of weak or disappointing data releases. Speculation over a possible cut to the Federal Reserve’s monetary easing programme also benefitted the US Dollar.
Currently the US Dollar is trading in the region of 0.6282 against the Pound and 0.7479 against the Euro.
The Euro
The Euro made gains against the Pound, Australian Dollar, New Zealand Dollar and US Dollar on Tuesday as disappointing data out of many of those nations weighed upon sentiment. The commodity based and emerging market currencies were weakened by increased speculation that the Federal Reserve could taper its monetary easing programme as soon as December.
Currently the Euro is trading in the region of 0.8399 against the Pound and 1.3369 against the US Dollar.
Australian Dollar
The ‘Aussie’ fell to a five-week low against the US Dollar and weakened against the Pound and Euro. The fall came after the release of worse-than-expected business confidence data out of Australia and as speculation that the Federal Reserve could taper its easing programme increased. In a report, the National Australia Bank said its Business Index fell to 5 in October, down from a reading of 12 in the previous month. Against the Euro the ‘Aussie’ weakened by 0.74%
Currently the Australian Dollar is trading in the region of 0.5857 against the Pound, 0.6974 against the Euro and 0.9324 against the US Dollar.
Canadian Dollar
The ‘Loonie’ fell to its weakest level in two months against the US Dollar after it was broadly weakened by the increasing speculation that the Federal Reserve will opt to cut its quantitative easing programme sooner than expected. Crude oil, Canada’s biggest export also snapped two days worth of gains which weighed upon the commodity based currency.
Currently the Canadian Dollar is trading in the region of 0.5981 against the Pound, 0.7122 against the Euro and 0.9522 against the US Dollar.
