Pound Sterling
The Pound edged higher against the Euro due to the release of better-than-expected retail sales data and managed to climb to a two-week high against the US Dollar as concerns over the impact of the government shutdown weighed heavily on the American currency. Retail sales in the UK rose more than expected, rising by 0.6% and beating economist expectations for a 0.4% increase.
Currently the Pound is trading in the region of 1.1789 against the Euro and 1.6064 against the US Dollar.
US Dollar
The ‘Greenback’ tumbled against the Pound and fell against all of its peers as the aftermath of the recent uncertainty in the US weighed heavily upon the currency. Investors are assessing the damage caused by the federal government shutdown and were left unimpressed that a deal over the nation’s budget and debt ceiling failed to address the issues dividing Democrats and Republicans. It weakened further after data showed that the number of Americans claiming unemployment benefit declined less than expected.
Currently the US Dollar is trading in the region of 0.6224 against the Pound and 0.7338 against the Euro.
The Euro
The Euro fell against the Pound following the release of the better-than-expected retail sales data out of the UK. Against the US Dollar the Euro soared to an 8-month high as confidence in the US currency was harmed by the recent budget and debt ceiling issues. The Euro benefitted as the Dollar came under heavy selling pressure as investors increased their bets that the Federal Reserve will choose to refrain from tapering its monetary easing programme.
Currently the Euro is trading in the region of 0.8482 against the British Pound and 1.3626 against the US Dollar.
Australian Dollar
The ‘Aussie’ leapt by a quarter of a US cent against the ‘Greenback’ following the announcement of the last-minute deal to temporarily extend the USA’s debt ceiling. The agreement boosted demand for riskier higher yielding assets benefitting the Australian currency.
Currently the Australian Dollar is trading in the region of 0.5967 against the Pound, 0.7035 against the Euro and 0.9586 against the US Dollar.
New Zealand Dollar
The ‘Kiwi’ followed its Australian relation higher as the debt ceiling agreement in the US bolstered demand for riskier assets. As a result of the deal struck in the US and the effect of the government shutdown on the US Dollar the New Zealand Dollar climbed to five-week highs.
Currently the New Zealand Dollar is trading in the region of 0.5267 against the Pound, 0.6209 against the Euro and 0.8461 against the US Dollar.
Canadian Dollar
The ‘Loonie’ edged higher against the US Dollar as expectations that the economic impact of the recent U.S. debt crisis would keep the Federal Reserve from scaling back its stimulus program weighed.
Currently the Canadian Dollar is trading in the region of 0.6043 against the Pound, 0.7125 against the Euro and 0.9708 against the US Dollar.