Pound Sterling GBP/EUR
The Pound softened against the Euro and fell to a fresh three-week low against the US Dollar. Due to a lack of domestic data releases Sterling was at the mercy of international factors. A better than expected producer price index report out of the USA sent the US Dollar broadly higher against most of its peers. Sterling is likely to recover lost ground on Thursday as a report is expected to show that UK house prices climbed to the highest level in more than 10-years.
Currently the Pound is trading in the region of 1.2027 against the Euro and 1.6351 against the US Dollar.
US Dollar USD/EUR
The ‘Greenback’ strengthened to a three-week high against the Pound and recovered from a two-week low against the Euro after data showed that producer prices in the US rose more than economists had forecast, fuelling speculation that the Federal Reserve will continue to taper its quantitative easing programme. A manufacturing report from New York also beat forecasts.
Currently the US Dollar is trading in the region of 0.6115 against the Pound and 0.7356 against the Euro.
The Euro
The Euro spent much of the session softer against its peers following the release of a report which showed disappointing GDP growth in Germany. The nation’s growth rate for 2013 was lower than expected by coming in at 0.4%, down from expectations for a figure of 0.85%. Spain showed further signs of improvement as inflation in the country firmed to 0.3% on a yearly basis, up from the 0.2% forecast. The Euro fell against the US Dollar after the ‘Greenback’ found support following positive PPI data.
Currently the Euro is trading in the region of 0.8311 against the Pound and 1.3591 against the US Dollar.
Australian Dollar AUD/EUR
The ‘Aussie’ declined against the majority of its peers as demand for the US Dollar rose after US Federal Reserve officials backed further reductions to the Bank’s monetary easing programme and as PPI and manufacturing reports came in better than forecast. The ‘Aussie’ could weaken further on Thursday if Australian employment data comes in below forecast.
Currently the Australian Dollar is trading in the region of 0.5461 against the Pound, 0.6569 against the Euro and 0.8928 against the US Dollar.
Canadian Dollar CAD/EUR
The Canadian Dollar tumbled against its peers and reached a four-year low against its US relation as speculation increased that the Bank of Canada will refrain from raising interest rates and could instead opt to make a cut instead as the two north American economies diverge. The ‘Loonie’ then regained some ground against the Euro and Pound after the price of Canada’s biggest export, crude oil increased.
Currently the Canadian Dollar is trading in the region of 0.5595 against the Pound, 0.6731 against the Euro and 0.9149 against the US Dollar.