Pound Sterling
The Pound has had a mixed session with it moving up and down in small motions as traders and investors conducted a bout of profit taking ahead of Christmas. Sterling softened against the perceived riskier currencies after the IMF changed its forecast for the US economy for the better. Demand for riskier assets and profit taking were the name of the game in a week that is devoid of major data releases for the UK currency.
Currently the Pound is trading in the region of 1.1931 against the Euro and 1.6357 against the US Dollar.
US Dollar
The ‘Greenback’ softened against the Euro and other peers as demand for riskier assets received a boost from an IMF report. The Dollar also fell as a result of investors embarking on a spree of profit taking before the end of the year and the Christmas holiday. Trade is light due to many traders already on their holidays but the currency received some support from positive spending data which came in at its highest level in five months.
Currently the US Dollar is trading in the region of 0.6113 against the Pound and 0.7296 against the Euro.
The Euro
The Euro is benefitting from the increased demand for riskier assets and found support from positive data out of Germany, Austria and Finland. Gains were limited after a consumer confidence report for Italy came in below expectations.
Currently the Euro is trading in the region of 0.8378 against the Pound and 1.3707 against the US Dollar.
Australian Dollar
The ‘Aussie’ rebounded from a three-and-a-half year low against the US Dollar as investors opted to take their profits before Christmas. The weaker US Dollar also bolstered the ‘Aussie’. Against the Euro the currency softened as the single currency took advantage of the increased demand for riskier assets and fairly positive data releases.
Currently the Australian Dollar is trading in the region of 0.5466 against the Pound, 0.6524 against the Euro and 0.8943 against the US Dollar.
Canadian Dollar
The Canadian Dollar made gains against its major peers including the Euro and US Dollar. The currency made gains following the publication of data which showed that Canadian economy expanded more than forecast in October. GDP expanded by 2.7% year-on-year beating the 2.4% predicted. The currency also found support from a rise in oil prices. The commodity’s value rose due to the crisis occurring in oil-rich South Sudan and reduced oil production in Libya and Nigeria.
Currently the Canadian Dollar is trading in the region of 0.5771 against the Pound, 0.6888 against the Euro and 0.9442 against the US Dollar.
