Strong UK Data Helps Pound (GBP/EUR) Hit Multi-Month Highs

Published: 2 Sep at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany, Japan, South Africa,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1766
A report showing that UK house price growth increased last month coupled with the expectation of positive UK manufacturing data boosted the Pound and saw the British asset trading in the region of a two-month high against the Euro as the European session got underway. Sterling’s gains could continue as UK manufacturing jumped from 54.8 to 57.2 in August, beating economists estimates for an increase to 55.0.

US Dollar
USD/EUR – Trading in the Region of 0.7565
‘Greenback’ movement may be limited today with US markets closed for Labour Day festivities, but investors will be looking ahead to tomorrow’s US ISM manufacturing gauge and keeping an eye on developments in Syria.

Euro
EUR/USD – Trading in the Region of 1.3216
The Euro began the day softer against both the Pound and US Dollar, and was little changed in the immediate aftermath of the release of manufacturing data for the Eurozone and Germany. While German manufacturing didn’t expand by quite as much as forecast, manufacturing in the Eurozone leapt to a 26-month high.

Australian Dollar
AUD/USD – Trading in the Region of 0.8984
As the Australian Dollar gained support from both foreign and home-grown developments, the currency advanced on several of its most traded peers and recouped much of its recent losses. The ‘Aussie’ was boosted by a better-than-expected manufacturing report for China and news that Australian building approvals gained by double the expected amount.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.7802
During Australasian trading the ‘Kiwi’ advanced by 1.1 per cent on the US Dollar and 2.0 per cent on the Yen as New Zealand’s terms of trade was shown to have climbed by 4.9 per cent in the second quarter, more than the 3.8 per cent forecast.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9493
At the close of last week the ‘Loonie’ recorded its third consecutive five-day drop against the US Dollar, adversely affected by both Syrian developments and less-than-impressive domestic data. The Bank of Canada’s rate decision, taking place on Wednesday, is likely to be the main cause of Canadian Dollar movement this week.

Japanese Yen
USD/JPY – Trading in the Region of 99.2400
As Japan’s Prime Minister Shinzo Abe received backing for a sales-tax increase the Yen slid against all of its most traded rivals, dropping from a two-week high against the Euro. The safe-haven asset was also knocked as positive Chinese data drove investors towards higher risk assets.

South African Rand
USD/ZAR – Trading in the Region of 10.1959
With US markets closed for a national holiday and commodity-driven assets supported by Chinese manufacturing figures the Rand began trade slightly stronger against the US Dollar. Rand movement may well be limited before tomorrow’s South African business confidence figures are published.
As of Monday, 2nd September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1786, GBP USD exchange rate was 1.5546, GBP AUD exchange rate was 1.728, GBP NZD exchange rate was 1.9891, GBP CAD exchange rate was 1.6407, GBP CNY exchange rate was 9.5137, GBP JPY exchange rate was 154.7103, and GBP ZAR exchange rate was 15.9583.

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