Pound Sterling
The Pound had a mixed session on Tuesday. In the morning the currency made gains against the Euro and US Dollar after consumer price index data showed a more-than-expected increase in September. UK house prices also rose again adding to fears that a housing bubble could emerge. Sterling then retreated against the Dollar in the afternoon after the US currency found support from increased optimism that an agreement will be made over the federal budget shutdown and debt ceiling. Against the Euro, the Pound made gains late in the session.
Currently the Pound is trading in the region of 1.1799 against the Euro and 1.6002 against the US Dollar.
US Dollar
The ‘Greenback’ managed to rally strongly against the Euro and made gains against the Pound as the markets grow increasingly optimistic that a deal will be reached over the budget shutdown and the debt ceiling deadline on October 17th. The Dollar fell against the higher yielding currencies such as the Australian and New Zealand Dollars as investors sought higher returns.
Currently the US Dollar is trading in the region of 0.6249 against the Pound and 0.7373 against the Euro.
The Euro
The Euro had a mixed session on Tuesday. In the morning the single currency made gains against most of its peers after better-than-expected sentiment data out of Germany bolstered confidence that the region’s largest economy is recovering well. It was the third consecutive month of improving confidence in the Eurozone’s largest economy and intimates that investors believe Germany can withstand the negative repercussions of the federal shutdown in the US. In the afternoon however the Euro fell as optimism grew that a deal was close to being made over the US debt ceiling.
Currently the Euro is trading in the region of 0.8475 against the British Pound and 1.3562 against the US Dollar.
Australian Dollar
The ‘Aussie’ soared to its highest level since June against the US Dollar after Australian policy makers refrained from saying that a weaker currency would support the nation’s economy. The Reserve Bank of Australia also held off raising interest rates which benefitted the currency.
Currently the Australian Dollar is trading in the region of 0.5965 against the Pound, 0.7039 against the Euro and 0.9546 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ followed its Australian relation higher against its peers as investors favour higher yielding assets ahead of the approaching US debt ceiling deadline and as Australia left open the option to cut interest rates. Data due for release on Wednesday is expected to show that consumer prices in New Zealand increased at an annual pace of 1.3%, the first time the rate has gone above the Central Bank’s target in months.
Currently the New Zealand Dollar is trading in the region of 0.5249 against the Pound, 0.6193 against the Euro and 0.8399 against the US Dollar.
Canadian Dollar
The ‘Loonie’ weakened against the US Dollar and fell against the Euro as doubts over negotiations for a deal in Canada’s biggest trading partner the USA emerged. The currency did find some support after data showed that the sale of Canadian homes increased. Non-seasonally adjusted sales for September surged by a whopping 18.2% year-on-year.
Currently the Canadian Dollar is trading in the region of 0.6043 against the Pound, 0.7131 against the Euro and 0.9671 against the US Dollar.