Dollar falls for a fifth day

Sending money home update

 

Pound Sterling

The Pound is close to an eleven-week high against the US Dollar ahead of the release of a report that is expected to show that UK construction fell at a slower pace than in April. Against the Euro, Sterling was little changed as the market awaits the European Central Bank’s decision on interest rates. The construction PMI is expected to come in at 48, up from the 47.2 in March. A reading below 50 indicates contraction.

US Dollar

The ‘Greenback’ fell for a fifth-day as the Federal Reserve said that it will maintain its bond buying programme at a pace of $85 billion a month and said that is prepared to raise or lower the level of purchases as economic conditions change. The currency was also weighed down by data that showed that US companies hired less staff than forecast in April.

The Euro

The Euro has declined against the majority of its peers after the Purchasing Manager Index for Spain showed that the nation has now declined for two years straight. The currency could have fallen further but the PMI’s for Italy, Germany and France showed slight improvement. The PMI for the whole Eurozone edged up from 46.5 to 46.7 a slight improvement, but the region is still contracting.  The market is also waiting to see whether the European Central Bank will cut interest rates.

Australian Dollar

The ‘Aussie’ has fallen sharply against its peers, hitting a two-month low against the Euro and Pound as renewed concerns over global growth sent investors running for government bonds. The currency came under pressure due to disappointing data from China. It received a further knock after it was revealed that Australian building approvals slipped by 5.5% in March, lower than forecast.

New Zealand Dollar

The ‘Kiwi’ has declined sharply after being sold off by investors worried over the slowdown in global growth. A combination of weak US employment data and China’s PMI sent the currency tumbling. The currency was also weighed down by a decline in commodity prices, most notably a fall of 10.2% in whole milk powder.

Canadian Dollar

The ‘Loonie’ has edged closer to parity with the US Dollar after demand for the currency was boosted following a plethora of negative economic data and depressed commodity prices. The US Fed’s decision to continue its monetary policies gave the ‘Loonie’ a boost and an increase in demand for crude oil aided the currency’s upward movement.

South African Rand

The Rand has weakened against the US Dollar due to a softening in the price of precious metals, erasing the modest gains made earlier in the week. The nation’s narrower-than-expected trade deficit for March had bolstered the Rand but the decline in commodity prices put it back into retreat.

Recent Posts

European Central Bank cuts interest rates! » « Unemployment in the Eurozone hits record high

Comments are closed.