Pound Sterling Gains (GBP/USD) While Euro Declines (EUR/USD)

Published: 5 Jun at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Italy, Japan, South Africa,

Pound Sterling
GBP/USD – Trading Higher, 1.5334
In a week of surprises, the UK posted yet another piece of unexpectedly strong economic data this morning. The latest figures have shown that services PMI climbed to 54.9 in May, considerably better than the advance to 53.1 expected by economist. This news will bolster the Pound in the hours ahead.

US Dollar
USD/EUR – Trading Lower, 0.7678
After a report revealed that the US budget deficit expanded by less-than-expected and the allure of safe-haven assets was boosted by declining Asian stocks, the US Dollar modestly strengthened against the majority of its riskier currency rivals. News from Japan pushed the ‘Greenback’ below 100 Yen per Dollar.

Euro
EUR/USD – Trading Lower, 1.3077
The Euro broadly softened this morning after Italian, German and Eurozone Services PMI data failed to reach estimates. The common currency is likely to see additional movement in the hours ahead following the publication of Eurozone GDP and retail sales figures.

Australian Dollar
AUD/USD – Trading Lower, 0.9578
With Australian GDP coming in at 2.5 per cent rather than the 2.7 per cent forecast, the ‘Aussie’ posted notable declines against several of its main counterparts. The disappointing growth data has increased the odds of the RBA issuing a rate cut in the months ahead.

New Zealand Dollar
NZD/USD – Trading Lower, 0.8002
Yesterday the New Zealand Dollar was able to advance on its peers as the OECD issued positive comments concerning the South Pacific nation’s economic outlook and the RBNZ left rates unaltered at its latest policy meeting. However, with the prospects of New Zealand’s main trading partner, Australia, dimmed by disappointing growth data, the ‘Kiwi’ later shed some of its gains.

Canadian Dollar
CAD/USD – Trading Lower, 0.9668
With the Canadian merchandise trade deficit expanding for a 16th consecutive month and commodities fluctuating the ‘Loonie’ fell against its US counterpart during local trade. Today’s Canadian building permit report could cause additional currency movement if it defies economists’ predictions for a decline of 3 per cent in April.

Japanese Yen
USD/JPY – Yen Weaker, 99.7800
With Japanese Prime Minister Shinzo Abe failing to offer any additional information regarding fiscal stimulus measures, the nation’s stocks slumped, the appeal of safe-haven assets was boosted and the Yen climbed against its peers. During local trade the Asian currency strengthened back to just under 100 Yen per Dollar.

South African Rand
ZAR/USD – Little Changed, 9.8466
After strengthening against the US Dollar yesterday the Rand was little changed as markets opened on Wednesday. But with domestic labour concerns persisting and the US stimulus situation uncertain, volatility can be expected.

As of Wednesday, 5th June 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1768, GBP USD exchange rate was 1.5407, GBP AUD exchange rate was 1.6177, GBP NZD exchange rate was 1.9348, GBP CAD exchange rate was 1.5936, GBP JPY exchange rate was 152.7303, and GBP ZAR exchange rate was 15.409.

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