Kiwi Dollar’s strength had eroded recent gains in commodity prices

Send Money Home Daily Currency update

Pound Sterling

The Pound has begun the week trading down against the US Dollar following last week’s revision of the UK’s GDP figures. The revised data showed that GDP contracted by 0.5% in the second quarter, a figure that was slightly better than the initial reading of a 0.7% contraction. Despite the improved figures it did little to calm investors worried over the state of the UK economy. A combination of weakening exports and a fall in consumer spending are also weighing down on the currency.
Despite the latest dip, the Pound is on track for its best weekly gains since mid-June after the minutes from the Fed’s last meeting raised expectations that U.S. policymakers could deliver another round of quantitative easing soon.

Currently the Pound is trading in the region of 1.262 against the Euro and 1.578 against the US Dollar.

US Dollar

The ‘Greenback’ gained ground against the Euro yesterday after the release of data showing that business confidence in Germany has dropped for a fourth-straight month. The gains were limited however as optimism over the European Central Banks language over the Euro crisis caused confidence to be bolstered in the single currency to the detriment of the Dollar. Expectations that the Federal Reserve will signal more quantitative easing measures have also weighed on the Dollar.

Currently the US Dollar is trading in the region of 0.633 against the British Pound and 0.800 against the Euro.

The Euro

The Euro has fallen against the US Dollar following a bigger-than-expected drop in German business sentiment. Sentiment towards the single currency remains uncertain as the markets await the outcome of a series of key events next month.  A speech by Federal Reserve Chairman Ben Bernanke due on Friday will also be keenly watched by market players for any signs of action by the U.S. central bank to spur sluggish growth.

Currently the Euro is trading in the region of 1.249 against the US Dollar and 0.791 against the British Pound.

Australian Dollar

The Australian Dollar is trading downwards as the markets weigh the possibility that the US Federal Reserve will implement further quantitative easing measures in its bid to kick-start the US economy. Traders believe that confirmation of further monetary easing would be a lift to the Australian Dollar which is sensitive to global growth expectations.  Trading is fairly subdued after many markets in the northern hemisphere slowly return from their summer holidays.

Currently the Australian Dollar is trading in the region of 0.657 against the Pound, 0.830 against the Euro and 1.037 against the US Dollar.

New Zealand Dollar

The ‘Kiwi’ has slipped after a dairy exporter cut its 2013 forecast payout to farmers citing a strong currency and falling commodity prices as the cause. Fonterra, the world’s biggest dairy exporter, lowered its forecast for the Farmgate Milk price component to $5.25 and reduced its forecast for the net profit component to a range of 40-to-50 cent. The Auckland-based company said the ‘Kiwi’ Dollar’s strength had eroded recent gains in commodity prices, and while it expects a pick-up in global dairy prices it couldn’t predict the strength of that recovery, leading to a dampening of the New Zealand Dollar.

Currently the New Zealand Dollar is trading in the region of 0.511 against the Pound, 0.807 against the US Dollar and 0.647 against the Euro.

Canadian Dollar

The ‘Loonie’ is trading up as traders focus on the latest data on Canadian economic growth and await the US Federal Reserve keynote speech on Friday. The latest reading of Canadian gross domestic product also comes out Friday and the consensus calls for economic growth of 0.1 per cent in June, the same reading as in May. This would add up to annual growth of 1.6 per cent.

Currently the Canadian Dollar is trading in the region of 0.808 against the Euro, 1.010 against the US Dollar and 0.639 against the British Pound