Pound Sterling GBP/EUR
The Pound firmed against the Euro following the release of data which showed that the UK economy expanded by 0.7% as expected in the fourth quarter of last year. The data released by the Office for National Statistics bolstered Sterling as it showed that business investment jumped by 8.5% from the previous year, increasing optimism that the UK economic recovery is continuing to pick up speed. The currency was restrained from pushing higher however after two policy makers at the Bank of England reiterated that the Central Bank plans to maintain interest rates at their current levels until at least 2015.
Currently the Pound is trading in the region of 1.2169 against the Euro and 1.6652 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ climbed to a weekly high against a number of peers following the release of data which showed that new house sales in the US rose by 9.6% in January. The figure market the largest increase in sales in over five years. The currency also found support from expectations that Fed Chairman Janet Yellen will reiterate the Central Bank’s commitment to tapering its monetary easing programme when she addresses the US senate tomorrow.
Currently the US Dollar is trading in the region of 0.6005 against the Pound and 0.7310 against the Euro.
The Euro
The Euro softened against the Pound and US Dollar in a session relatively devoid of European data releases. What data there was released caused little reaction in the markets. A Gfk consumer sentiment index for Germany climbed to a seven-year high. Investors chose to focus instead on UK GDP and US new home sales data.
Currently the Euro is trading in the region of 0.8217 against the Pound and 1.3679 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ weakened against the US Dollar and softened against the Euro after a report on the value of construction projects in the South Pacific nation came in well below economist expectations. The fall to a seven week low in the value of iron ore, Australia’s biggest commodity export and the sharp drop of the Chinese Yuan also weighed upon the currency.
Currently the Australian Dollar is trading in the region of 0.5386 against the Pound, 0.6556 against the Euro and 0.8967 against the US Dollar.
Canadian Dollar CAD/EUR
The ‘Loonie’ spent most of Wednesday’s session little changed against its peers due to a lack of domestic economic data releases and as economists look ahead to next week’s Canadian data releases. Traders are waiting for the Bank of Canada’s rate announcement due next Wednesday and the US jobs report due at the end of next week. The currency found some support from a rise in copper and crude oil prices.
Currently the Canadian Dollar is trading in the region of 0.5409 against the Pound, 0.6579 against the Euro and 0.9009 against the US Dollar.
