Currencies Tense Ahead Of ECB And BoE Rate Decisions

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

Pound Sterling
GBP/EUR – Trading in the Region of 1.1837
This week’s better-than-forecast UK data is keeping the Pound buoyed against peers like the Euro this morning. Today Sterling volatility is likely to occur in response to the Bank of England’s rate decision.

US Dollar
USD/EUR – Trading in the Region of 0.7595
Hopes that the US employment sector will show further improvement this week and add to the argument for the Federal Reserve reigning in stimulus supported the safe-haven asset against rivals like the Yen overnight. If tomorrow’s US non-farm payrolls report is positive the US Dollar could extend gains over the weekend.

Euro
EUR/USD – Trading in the Region of 1.3171
The Euro was trading close to a three-month low against the Pound as the European session began and markets waited for the influential central bank rate decisions occurring today. The European Central Bank is expected to offer an encouraging, yet cautious, outlook for the Eurozone’s economic recovery.

Australian Dollar
AUD/USD – Trading in the Region of 0.9145
Overnight the Australian Dollar edged away from its two-week high against the US Dollar as predictions for a strong US non-farm payrolls report boosted the American asset against its peers.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.7841
An absence of pertinent domestic news saw the New Zealand Dollar ease lower against rivals like the ‘Greenback’ during Australasian trading. Like the ‘Aussie’, the ‘Kiwi’ is being adversely affected by the expectation that the Federal Reserve will begin tapering stimulus this month.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9527
During the North American session heightened risk-appetite and the Bank of Canada’s rate decision helped the Canadian Dollar advance on its US peer. While the ‘Loonie’ could experience movement today as a result of US news, investors will also be looking ahead to tomorrow’s Canadian employment data.

Japanese Yen
USD/JPY – Trading in the Region of 99.9300
After the Bank of Japan’s policy meeting, at which rates were held and an unprecedented level of fiscal stimulus was maintained the Yen declined. The safe-haven asset is now trading within touching distance of 100 Yen per Euro. If today’s US employment data is positive further Yen loses may occur.

South African Rand
USD/ZAR – Trading in the Region of 10.2510
With Syria expected to come under the spotlight during the G-20 Summit and the European Central Bank’s rate decision imminent, the Rand was slightly softer against peers like the US Dollar. The commodity-driven asset largely shed gains recorded yesterday on the back of hopes that local mining strikes will end soon.
As of Thursday, 5th September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.188, GBP USD exchange rate was 1.5587, GBP AUD exchange rate was 1.7077, GBP NZD exchange rate was 1.9758, GBP CAD exchange rate was 1.6373, GBP JPY exchange rate was 156.1257, and GBP ZAR exchange rate was 15.9181.

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