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Pound Sterling

Sterling has stayed strong, holding near its three-and-a-half year high against a weaker Euro. The single currency has weakened once again thanks to the ratings agency Moody’s slashing the rating for Italy. The euro edged down 0.1 percent against the pound to 79.02 pence, in sight of a 78.71 pence trough hit on Wednesday, it’s weakest since late 2008. Against the US Dollar the Pound is holding steady after hitting a five week low yesterday.

The currency could make losses against the Dollar if the Eurozone crisis continues to escalate and forces markets to become more risk averse. Currently the Pound is trading in the region of 1.544 and 1.265 against the Euro.

US Dollar

The ‘Greenback’ continues to post highs against a basket of currencies as investors continue to seek a safe haven and risk sentiment wanes. It did see slight losses against some of the riskier currencies after the Chinese posted expected GDP figures. Investors chose to take a chance with the riskier currencies despite continuingly bad news out of the Eurozone.

The dollar reversed an early rise against the Singapore Dollar after the city-state reported advance GDP data for the second quarter, which was below forecasts. Currently the US Dollar is trading in the region of 0.818 against the Euro and 0.647 against the British Pound.

The Euro

The Euro has slipped to its lowest level for two years against the US Dollar after worries over the Eurozone continue to pile up and the US Fed minutes dashed any hopes for further monetary stimulus measures. The Euro hit its lowest level against the Dollar after falling to $1.2165 the currency lowest level since mid-2010.

The single currency was weakened further by the news that Italy received a two- notch ratings downgrade. The credit ratings agency Moody’s slashed the nation’s credit rating to just two notches above junk status and warned that further cuts are on the cards.

The news piled more pressure on the Euro, which was down to $1.2190, not far off a two-year low of $1.2166 hit on trading platform EBS the previous day. Against the Pound the Euro is still hovering in the region of a fresh three and a half year low, currently trading in the region of 0.790.

Australian Dollar

The ‘Aussie’ weakened considerably last night ahead of the release of China’s latest GDP data. Investors had been worrying that the data would be worse than predicted but after the data’s release the markets sighed in relief. The figure turned out to be what had been expected and as a result caused the ‘Aussie’ to rise by 0.3%. Chinas economy grew by 7.6% in the second quarter of the year. Whilst it is the slowest pace of growth China has seen in three years the result was in line with market predictions. The Australian Dollar is trading in the region of 0.833 against the Euro and 1.014 against the US Dollar.

New Zealand Dollar

The ‘Kiwi’ has followed its Australian neighbour once more after suffering losses and then in regaining some of its lost ground. The Chinese data release saw the markets ease their panic selling of the commodity currencies. Despite the reprieve from China the ‘Kiwi’ is under threat from the markets’ disappointment at the lack of policy response from both the U.S. Federal Reserve and Bank of Japan, and lingering concerns over the Euro-zone. Currently the New Zealand Dollar is trading in the region of 0.65 against the Euro and 0.51 against the British Pound.

Canadian Dollar

The ‘Loonie’ ended yesterday’s session slightly higher against the US Dollar thanks to a rise in global oil prices and despite worries about a slowing in the global economy. The commodity sensitive currency was up 0.12 of a cent to 98.12 US cents, reversing losses as oil prices recovered. The rise in oil prices comes after the United States announced plans that it would implement further financial sanctions against Iran in a bid to stop the country’s nuclear missile programme. Currently the Canadian Dollar is trading in the region of 0.983 against the ‘Greenback’ and 0.636 against the British Pound.