Riskier Currencies Rise As US Data Disappoints

Published: 4 Jun 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/USD – Trading Higher, 1.5290
The Pound is likely to extend recent gains in the hours ahead as yesterday’s better-than-anticipated manufacturing PMI was followed by today’s construction PMI data, which showed an unexpected return to growth in May. Although economists expected the index to rise to 49.8 it actually climbed to 50.8.

US Dollar
USD/EUR – Trading Lower, 0.7678
During local trade the safe-haven US Dollar declined against the majority of its most traded peers, notably falling below 100 Yen per Dollar for the first time in a month. The common currency’s decline was prompted by disappointing US manufacturing figures, which lowered the odds of the Federal Reserve reigning in stimulus before the end of the year.

Euro
EUR/USD – Trading Higher, 1.3065
After strengthening yesterday in response to better than anticipated manufacturing PMI for the Eurozone, the common currency continued to advance against a broadly softening US Dollar ahead of the publication of the region’s Producer Price Index for April.


Australian Dollar
AUD/USD – Trading Higher, 0.9669
Although the Reserve Bank of Australia’s hints regarding the odds of additional easing being implemented caused the ‘Aussie’ to modestly decline during local trade, the South Pacific currency retained much of its previous advance against the ‘Greenback’. The Australian Dollar leapt by the most for over a year against its US counterpart as less-than-impressive economic data from the US knocked speculation regarding the Federal Reserve paring stimulus.

New Zealand Dollar
NZD/USD – Trading Higher, 0.8018
As disappointing US manufacturing data lowered the odds of the Federal Reserve reducing its current level of stimulus before the end of the year, riskier currencies like the New Zealand Dollar were supported. Consequently the ‘Kiwi’ climbed by 1.8 per cent against the US Dollar, pushing back above 80 cents.

Canadian Dollar
CAD/USD – Trading Higher, 0.9682
The Canadian Dollar strengthened against its US peer during the local session as commodities climbed, Chinese PMI improved and US manufacturing slowed. The ‘Loonie’ climbed by the most for a year against the ‘Greenback’ yesterday, but a lack of influential North American news may limit additional movement today.


Japanese Yen
USD/JPY – Yen Weaker, 100.3700
Although the Yen briefly strengthened against the US Dollar yesterday, data showing a failure for Yen profits to be put back into capital spending weakened the Asian currency to around 100 per Dollar once more.

South African Rand
ZAR/USD – Rand Stronger, 9.7690
The Rand was able to gain by the most for nearly a year after technical indicators signalled that the currency had been oversold. After strengthening to 9.8443 against the US Dollar the currency posted additional gains as commodities gained.

As of Tuesday, 4th June 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1705, GBP USD exchange rate was 1.5309, GBP AUD exchange rate was 1.5862, GBP NZD exchange rate was 1.9088, GBP CAD exchange rate was 1.5834, GBP CNY exchange rate was 9.3825, GBP JPY exchange rate was 153.3826, and GBP ZAR exchange rate was 15.0499.

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