Exchange Rate News: GBP/USD Recovers Losses, EUR/USD Fluctuates

Published: 4 Nov at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, France, Germany, Italy, Japan, South Africa,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1806
While the Pound began local trading softer against a bolstered US Dollar, the British asset advanced against several of its most traded peers as UK construction PMI for October exceeded estimates by rising to 59.4 from 58.9 rather than falling to 58.7 as expected.

US Dollar
USD/EUR – Trading in the Region of 0.7410
On Friday stronger than anticipated manufacturing data for the US added to the case for the Federal Reserve tapering stimulus before the end of the year and helped the ‘Greenback’ adopt a bullish relationship with several of its most traded currency rivals. The safe-haven currency could extend gains if today’s US factory orders data is positive.

Euro
EUR/USD – Trading in the Region of 1.3493
The Euro broadly softened last week as several pieces of less-than-impressive data for the Eurozone sparked fears that the European Central Bank may have to introduce additional easing measures in order to support the currency bloc. This morning the common currency fluctuated as Italian and French PMI came in below expectations while German manufacturing PMI and Eurozone investor confidence data exceeded forecasts.

Australian Dollar
AUD/USD – Trading in the Region 0.9495
After positing two consecutive five-day declines against its US rival the Australian Dollar was able to enjoy a rebound overnight as domestic retail sales surged by the most for seven months. However, with the Reserve Bank of Australia’s rate decision looming the ‘Aussie’ is likely to experience considerable fluctuations.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8293
The ‘Kiwi’ recovered some ground against its US rival during local trading as the South Pacific asset garnered support from an upbeat non-manufacturing PMI report for China and a 1.3 per cent increase in New Zealand’s ANZ commodity prices. Tomorrow’s employment figures for New Zealand can be expected to cause significant ‘Kiwi’ movement.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9602
While the ‘Loonie’ was supported last week by an encouraging Canadian growth report, fluctuating commodity prices and US developments inspired volatility. With influential Canadian data thin on the ground until Wednesday ‘Loonie’ movement may be limited, although US reports will be of interest.

Japanese Yen
USD/JPY – Trading in the Region of 98.6300
The prospect of surprisingly strong US data prompting the Federal Reserve to begin tapering stimulus before the end of the year left the Yen struggling against the ‘Greenback’. If today’s US factory orders data also surprises to the upside the Yen could extend declines.

South African Rand
USD/ZAR – Trading in the Region of 10.1232
As local trading progressed the Rand continued to languish at a multi-month low against the US Dollar. With all of this week’s major South African data scheduled for release on Thursday, additional Rand movement may be inspired by global developments in the days ahead.
As of Monday, 4th November 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 1.5971, GBP AUD exchange rate was 1.6793, GBP NZD exchange rate was 1.9259, GBP CAD exchange rate was 1.6646, GBP CNY exchange rate was 9.7409, GBP JPY exchange rate was 157.5291, and GBP ZAR exchange rate was 16.1905.

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