EUR/USD And EUR/GBP Volatility Likely As ECB Meets

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

Pound Sterling
GBP/EUR – Trading in the Region of 1.1976
While yesterday’s UK manufacturing PMI fell short of estimates, the Pound still enjoyed a bullish relationship with several of its peers and began the European session at an 8-month high against the US Dollar. However, with the construction sector also failing to expand by as much as forecast, Sterling could give up gains as trade continues.

US Dollar
USD/EUR – Trading in the Region of 0.7399
Overnight the US Dollar recovered losses against peers like the Euro as the expectation that this week’s US non-farm payrolls report will indicate that the labour market is recovering boosted the safe-haven asset. In the hours ahead the US ADP employment change report could dictate ‘Greenback’ movement.

Euro
EUR/USD – Trading in the Region of 1.3513
Speculation surrounding the upcoming European Central Bank policy meeting coupled with the Italian parliament’s confidence vote left the common currency softer against its US and British counterparts as local trading began. The ECB rate decision and accompanying statement could trigger significant Euro volatility.

Australian Dollar
AUD/USD – Trading in the Region of 0.9338
Ahead of the release of Australia’s AiG performance of service index the ‘Aussie’ posted widespread declines as a result of disappointing building permit and trade deficit data. US developments could see the South Pacific asset move further before the close of the North American session.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8210
Domestic productivity growth concerns left the New Zealand Dollar weaker against major rivals like the ‘Greenback’ as local trade closed. Additional ‘Kiwi’ fluctuations are likely to occur in response to tomorrow’s non-manufacturing PMI data for China

Canadian Dollar
CAD/USD – Trading in the Region of 0.9660
Although Canada’s economy expanded by more than expected in July, fears that the nation could lose steam as a result of the US partial federal shutdown kept pressure on the ‘Loonie’ in the local session and the commodity-driven asset gave up much of its recent gains.

Japanese Yen
USD/JPY – Trading in the Region of 97.3000
The Yen extended its rally against the US Dollar during Australasian trading, despite the ‘Greenback’ recovering ground against some peers ahead of Friday’s US non-farm payrolls report. Japanese Prime Minister Shinzo Abe’s new stimulus package also supported the Yen.

South African Rand
USD/ZAR – Trading in the Region of 10.1457
A variety of factors left the Rand floundering as the local session began. The South African asset weakened against its US and British rivals in response to US developments, yesterday’s disappointing domestic manufacturing data, a less-than-optimistic report on South Africa from the IMF and fluctuating gold prices. With little in the way of local data scheduled for publication for the rest of the week, Rand movement is likely to be dictated by global developments.
As of Wednesday, 2nd October 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1947, GBP USD exchange rate was 1.6225, GBP AUD exchange rate was 1.7291, GBP NZD exchange rate was 1.9526, GBP CAD exchange rate was 1.6765, GBP CNY exchange rate was 9.9321, GBP JPY exchange rate was 158.1373, and GBP ZAR exchange rate was 16.2341.

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