Pound Sterling GBP/EUR
The Pound was little moved against the Euro throughout the session due to a lack of key economic data releases. What data there was softened the currency. Construction activity in the UK dipped slightly in February but had little negative impact on the currency. Investor attention remained fixed on events occurring in Ukraine and the upcoming Bank of England policy meeting due to be held on Thursday.
Currently the Pound is trading in the region of 1.2133 against the Euro and 1.6693 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ fell against most of its peers after demand for safe haven currencies waned after Russian President Vladimir Putin said that military intervention is not needed and that there will be no war against the Ukrainian people. Losses were held in check however due to the currency continuing to find support from Monday’s positive consumer spending and manufacturing PMI reports.
Currently the US Dollar is trading in the region of 0.5992 against the Pound and 0.7270 against the Euro.
The Euro
The Euro advanced against the US Dollar but fell against riskier currencies such as the Australian Dollar as risk sentiment improved as the threat of war in Ukraine subsided. The single currency remains supported by last week’s better than expected inflation data which has eased expectations that the ECB will alter policy to stave off the threat of deflation.
Currently the Euro is trading in the region of 0.8242 against the Pound and 1.3758 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ initially fell against the majority of its peers after the Reserve Bank of Australia maintained interest rates at the record low level of 2.5%. The currency weakened after the Central Bank’s policy makers said that the exchange rate was still too high. As the session progressed the ‘Aussie’ strengthened alongside other perceived riskier assets as an easing of tensions in Ukraine improved risk sentiment.
Currently the Australian Dollar is trading in the region of 0.5358 against the Pound, 0.6498 against the Euro and 0.8942 against the US Dollar.
Canadian Dollar CAD/EUR
The ‘Loonie’ made little movement against its peers due to a lack of economic data releases. Investors are looking ahead to tomorrows Bank of Canada interest rate review.
Currently the Canadian Dollar is trading in the region of 0.5410 against the Pound, 0.6563 against the Euro and 0.9034 against the US Dollar.
