Pound Sterling GBP/EUR
The Pound was relatively little changed against the Euro on Thursday afternoon as trade was muted due to a reduction in risk appetite caused by tensions between Russia and Ukraine. Sterling was also little moved against the US Dollar as the American currency received support from demand for safe haven assets. With a lack of key economic data for the Pound today investors are looking ahead to tomorrow mornings Gfk Consumer confidence report. If that comes in positively then the GBP/EUR is likely to strengthen.
Currently the Pound is trading in the region of 1.2180 against the Euro and 1.6660 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ is little moved against the Euro as concerns over the outcome of political turmoil in Ukraine continued to weigh on market sentiment, and as investors monitored comments by Federal Reserve Chairwoman Janet Yellen. The Fed Chairman told the US senate that it was difficult to ascertain how much of the recent run of soft data releases a result of the harsh winter weather was. She added that the bank will be watching closely for signals as to whether the recovery is progressing as expected. The currency was also little changed against the Pound.
Currently the US Dollar is trading in the region of 0.6002 against the Pound and 0.7309 against the Euro.
The Euro
The Euro was little moved against the Pound and US Dollar as tensions in the Ukraine weighed upon market sentiment. The single currency was weighed upon by a report which showed that inflation in Germany rose less than expected this month, heightening investor concerns over deflation in the Eurozone. If tomorrow’s Eurozone inflation data comes in below forecasts we can expect the single currency to weaken against its peers and see speculation rise that the ECB will introduce new measures to tackle the threat of deflation at next week’s policy meeting.
Currently the Euro is trading in the region of 0.8211 against the Pound and 1.3681 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ fell below a two-week low against the US Dollar and softened against the Pound and Euro after it was weighed upon by data which showed that private capital expenditure in Australia fell more-than-expected in the last quarter.
Currently the Australian Dollar is trading in the region of 0.5368 against the Pound, 0.6530 against the Euro and 0.8943 against the US Dollar.
Canadian Dollar CAD/EUR
The ‘Loonie’ made gains against the Euro after data showed that Canada’s current account deficit widened less than forecast at the end of last year. Statistics Canada showed that the North American nation’s current account deficit widened to a seasonally adjusted figure of C$16 billion in the final quarter of 2013, up from the C$14.8 billion seen in the third quarter. Economists had been expecting the deficit to have widened by C$17 billion in the fourth quarter. Volatility is expected on Friday due to the release of Canadian GDP data.
Currently the Canadian Dollar is trading in the region of 0.5388 against the Pound, 0.6561 against the Euro and 0.8977 against the US Dollar.
