Euros on the increase

Daily Currency update

 Pound Sterling

The Pound has fallen further against the Euro ahead of the release of data that is expected to show that UK inflation slowed to a 2 ½ year low in July. Sterling also weakened against 10 of its 16 peers following the revelation that UK house prices dropped to its lowest level for a year. Against the US Dollar the currency rose to a two-week high as demand for the safe-haven currency waned on the back of increasing optimism over the European Central Bank’s proposed bond buying scheme.

The Euro was up 0.5 percent at 78.70 pence, recovering from a drop to 78.285 pence last week when ‘Sterling’ gained after Bank of England Governor Mervyn King dampened speculation that  the central bank might cut interest rates.

The Pound is currently trading in the region of 1.268 against the Euro and 1.570 against the US Dollar.

 US Dollar

The ‘Greenback’ has weakened against a basket of currencies following the lessening demand for the safe-haven Dollar. The fall comes after traders and investors once more became optimistic over the ECB’s bond buying scheme. Today’s GDP data for the single currency region is expected to show a contraction for the second quarter, raising optimism that the ECB will step in and act. The Dollar could start making gains as the week progresses if the ECB action is not forthcoming, doubts are sure to kick in once again benefitting the safe haven currencies of the US Dollar and Japanese Yen.

The US Dollar is trading in the region of 0.809 against the Euro and 0.637 against the British Pound.

 The Euro

The Euro has posted gains against many of its peers following the release of regional GDP data. The figures weren’t as bad as predicted with France posting 0% growth and Germany doing better than expected by posting 0.3% growth. Despite the Euro zones powerhouse nation posting growth it will not be enough to prevent the currency bloc slipping into recession. Investors and traders have raised their hopes that the GDP data will make the ECB take action to bolster the struggling region.

The Euro is trading in the region of 0.788 against the British Pound and 1.238 against the US Dollar.

Australian Dollar

The Aussie Dollar has weakened slightly against the Euro and US Dollar thanks to a quiet day for domestic data. Traders are awaiting the results of US retail sales data and the growth figures for the Eurozone to generate a picture of the state of the global economy. The ‘Aussie’ remains the strongest currency after a survey showing that business conditions remain mixed in Australia was largely ignored by currency traders. National Australia Bank’s business confidence index rose to +4 points in July from -3 points in June, but business conditions fell to -3 points from -1 point in June.

The Australian Dollar is trading in the region of 0.850 against the Euro, 1.0516 against the US Dollar and 0.670 against the British Pound.

New Zealand Dollar

The New Zealand Dollar is holding near a two-week low against the US Dollar despite posting stronger-than-expected retail sales, the data failed to improve optimism among investors. Optimism remains low over the health of the global economy and the countries growth prospects. Traders are also being cautious as they wait for government policy decisions due to be made at a banker’s summit on the 31^st of August.

The New Zealand Dollar is trading in the region of 0.655 against the Euro, 0.810 against the US Dollar and 0.516 against the British Pound.

Canadian Dollar

The ‘Loonie’ has declined for the first time in six days against its US relation as the demand for commodities fell and the nation’s largest export of crude oil fluctuated after hitting $93 a barrel last week. Canada’s currency was down 0.2 percent at 99.26 cents per U.S. dollar at 5 p.m. in Toronto after touching 99.05 cents.

Despite the slight losses the Canadian currency remains strong and remains above parity against the US Dollar.

The Canadian Dollar is trading in the region of 1.007 against the US Dollar, 0.814 against the Euro and 0.641 against the British Pound