UK Construction Surge Sees GBP/EUR Soar, US Dollar Fluctuations Likely

Published: 3 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, Japan, South Africa,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1817
The Pound began the European session trading against the Euro in the region of a two-month high, and the British asset is likely to enjoy an additional surge against its European rival in the hours ahead as UK construction data smashed estimates.

US Dollar
USD/EUR – Trading in the Region of 0.7596
With US markets reopened following a national holiday, the ‘Greenback’ is likely to experience some volatility today as a result of US ISM manufacturing data. If the gauge comes in at or above the 54 forecast, the increased odds of the Federal Reserve tapering stimulus could see the US Dollar gain.

Euro
EUR/USD – Trading in the Region of 1.3165
Today’s main Eurozone data, the currency bloc’s producer price index, is unlikely to trigger significant Euro movement, so the EUR/GBP pairing will be driven by UK construction news while the EUR/USD pairing will respond to US manufacturing data. If the results are positive the commodity-driven currency may continue softening.

Australian Dollar
AUD/USD – Trading in the Region of 0.9033
Although less-than-impressive Australian retail sales and current account figures saw the ‘Aussie’ fall early into the local session, the Reserve Bank of Australia’s rate decision and policy statement helped the South Pacific currency rebound. The RBA opted to hold rates at record lows and refrained from issuing any hints regarding further easing.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.7812
During Australasian trading the ‘Kiwi’ extended yesterday’s advance on its US peer. The New Zealand Dollar also gained on several of its other main rivals as a domestic report showed that commodity prices climbed by 0.7 per cent in August.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9483
A light news day saw the ‘Loonie’ close the local session little-changed. Canadian Dollar movement may be triggered by US manufacturing data in the hours ahead, although investors will also be looking ahead to tomorrow’s Bank of Canada rate decision.

Japanese Yen
USD/JPY – Trading in the Region of 99.6300
With signs of improving economic conditions in the Eurozone, China and the UK reducing demand for safe haven assets the Yen declined against all of its main rivals, brushing a month-low against the US Dollar.

South African Rand
USD/ZAR – Trading in the Region of 10.2673
Encouraging local PMI and positive manufacturing data for China supported the commodity driven Rand yesterday, but the currency was flat this morning ahead of the publication of today’s South African business confidence figures.
As of Tuesday, 3rd September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1817, GBP USD exchange rate was 1.5561, GBP AUD exchange rate was 1.718, GBP NZD exchange rate was 1.9939, GBP CAD exchange rate was 1.6396, GBP CNY exchange rate was 9.5241, GBP JPY exchange rate was 155.0745, and GBP ZAR exchange rate was 16.0731.

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