Pound Sterling
The Pound spent much of the session down against its peers on a day of fairly muted trading as investors settled into a wait and see position before the publication of the minutes for the Bank of England’s November policy meeting. The currency received some support after the OEDC sharply revised its forecasts for the UK economy saying that the nation’s economy will expand by 1.4% this year and by 2.4% in 2014, up from 0.8% and 1.5% in May.
Currently the Pound is trading in the region of 1.1910 against the Euro and 1.6098 against the US Dollar.
US Dollar
The ‘Greenback’ spent the session down against the majority of its peers. In the afternoon the Euro hit a session high. The currency was weighed down by continued confusion as to when the Federal Reserve will choose to taper its monetary easing programme. Expectations that no cut will occur until next year sent the currency down against most emerging and commodity market currencies.
Currently the US Dollar is trading in the region of 0.6211 against the Pound and 0.7398 against the Euro.
The Euro
The Euro managed to hit a session high against the US Dollar and traded higher against the Pound as the Dollar was weighed down Fed speculation and Sterling was refrained in light trading. The single currency did find some after economic sentiment data out of Germany hit a four-year high.
Currently the Euro is trading in the region of 0.8395 against the Pound and 1.3515 against the US Dollar.
Australian Dollar
The ‘Aussie’ strengthened for a second day against the US Dollar, Pound and Euro due to the Reserve Bank of Australia saying that its last round of interest rate cuts appear to be working but that it remained open to the option of loosening its monetary policy further. The currency was also supported after the Conference Board Leading Index came in above expectations.
Currently the Australian Dollar is trading in the region of 0.5852 against the Pound, 0.6971 against the Euro and 0.9422 against the US Dollar.
Canadian Dollar
The ‘Loonie’ fell against the majority of its most traded peers after the value of Canada’s biggest export of crude oil fell to a five-month low. The currency looks set to make further declines as the week progresses as investors raise their bets that Friday’s inflation data will come in below expectations.
Currently the Canadian Dollar is trading in the region of 0.5949 against the Pound, 0.7086 against the Euro and 0.9577 against the US Dollar.
