Compare Money Transfers Currency update

Compare Money Transfers Daily Currency update

 Pound Sterling

The Pound has broken through the all important 1.60 mark against the US Dollar and is trading at a new four-month high after the German Constitutional Court ruled in favour of ratifying the Euro zone’s proposed rescue fund. Demand for Sterling against the Dollar was also aided as the markets expect the US Federal Reserve to announce a new round of monetary easing later today.

The Pound could make further gains against the Dollar if the Fed does indeed announce further Quantitative Easing, however it could suffer if the policymakers refrain from taking action. Against the Euro the Pound has dipped to a two-month low against the Euro as demand for the riskier single currency shot up.

Currently the Pound is trading in the region of 1.247 against the Euro and 1.611 against the US Dollar.

 US Dollar

The US Dollar has fallen against most of its peers ahead of the outcome of the two day meeting of the Federal Reserve. Most traders are expecting that the Fed could announce a new round of Quantitative easing as-soon-as next week. The Dollar also suffered after the credit ratings agency Moody’s raised investor fears over a possible rating downgrade of the United States.  Against the Euro the currency hit a four-month low after the German court ruled that the euro zone bailout fund can be ratified. The decision boosted demand for riskier currencies.

Currently the US Dollar is trading in the region of 0.620 against the Pound and 0.773 against the Euro.

 The Euro

The Euro is trading at a four-month high against the US Dollar and a two-month high against the British Pound. Investors breathed a sigh of relief after the German Constitutional Court ruled in favour of ratifying the ESM scheme.

The court imposed some conditions on the scheme including that the German Parliament should be given veto rights over the current contribution of €190 billion. With the Court allowing the act to pass demand for the Euro has increased, strengthening the single currency.

Currently the Euro is trading in the region of 0.801 against the British Pound and 1.292 against the US Dollar.

Australian Dollar

The ‘Aussie’ is trading at a three-week high against the US Dollar due to the speculation that the Federal Reserve will signal further stimulus. The currency has benefitted from the demand for riskier currencies.

Currently the Australian Dollar is trading in the region of 0.650 against the Pound, 0.810 against the Euro and 1.048 against the US Dollar.

 New Zealand Dollar

The ‘Kiwi’ has followed its neighbour in an upward move ahead of the Federal Reserve’s expected move to introduce further QE. Some traders are predicting that if the measures are announced then the ‘Kiwi’ could make substantial gains against its US counterpart.

Currently the New Zealand Dollar is trading in the region of 0.510 against the Pound, 0.635 against the Euro and 0.820 against the US Dollar.

 Canadian Dollar

The ‘Loonie’ broke the trend in the markets by making a decline against the US Dollar. Expectations that the Federal Reserve will introduce more QE have caused traders to be cautious over the Canadian currency as the United States is its biggest trade partner and any perceived weakness in that nation’s economy has an impact.

Currently the Canadian Dollar is trading in the region of 0.635 against the Pound, 0.792 against the Euro and 1.024 against the US Dollar.