Pound Sterling
The Pound began Monday’s session little moved against the Euro before weakening as data showed that UK house prices fell in November. According to Rightmove Plc house prices in England and Wales fell by 2.4%. Sterling is trading close to a three-week high against the US Dollar due to last week’s positive data and as investors await the publication of the Bank of England’s November policy meeting. As the session progressed the currency weakened as UK government bonds fell for the first time in five days. Attention is now focused on Wednesday as the Bank of England releases the minutes for its November policy meeting.
Currently the Pound is trading in the region of 1.1907 against the Euro and 1.6120 against the US Dollar.
US Dollar
The ‘Greenback’ spent much of the session trading close to a three-week low against the Pound and fell for a second day against the Euro. The currency remains under heavy pressure due to the uncertainty as to whether the Federal Reserve will choose to taper its easing programme or not. Investors will be focused on Wednesday when the Fed publishes the minutes of its last policy meeting. Economists will look at the report for some guidance or clues as to the Central Bank’s intentions.
Currently the US Dollar is trading in the region of 0.6203 against the Pound and 0.7386 against the Euro.
The Euro
The Euro made gains against the Pound and US Dollar following the publication of better than expected trade data out of the Eurozone. Exports increased whilst imports stagnated widening the regions balance of trade to a wider than forecast margin of €13.1 billion. Economists had been forecasting an increase of €10 billion. The Euro could extend its gains tomorrow due to a lack of UK and US data and if the German ZEW Index comes in positively.
Currently the Euro is trading in the region of 0.8397 against the Pound and 1.3537 against the US Dollar.
Australian Dollar
The ‘Aussie’ made gains against the majority of its major peers after the Chinese government unveiled its biggest economic reforms since the 1990’s. The news bolstered the outlook for Australia’s exports to its biggest trading partner. The currency is still expected to fall before the end of the year as the Reserve Bank does what it can to weaken the ‘Aussie’ in a bid to boost exports.
Currently the Australian Dollar is trading in the region of 0.5838 against the Pound, 0.6952 against the Euro and 0.9412 against the US Dollar.
Canadian Dollar
The ‘Loonie’ made its biggest gains in more than a week as the outlook for Canadian exports received a boost from China’s economic reforms announcement. The currency made its second consecutive gain against its US relation and strengthened against the Pound and Euro.
Currently the Canadian Dollar is trading in the region of 0.5952 against the Pound, 0.7087 against the Euro and 0.9595 against the US Dollar.
