Pound (GBP) Set For 5-Day Gain Before US Employment Data

Published: 6 Sep at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Japan, South Africa,

Pound Sterling
Following the European Central Bank and Bank of England rate decisions the Pound approached its highest level against the Euro since early May. The British asset also strengthened against the US Dollar. While this morning’s industrial/manufacturing data could impact Sterling, investors will be focusing on today’s big US news.
GBP/EUR – Trading in the Region of 1.1883

US Dollar
USD/EUR – Trading in the Region of 0.7622
With the influential US non-farm payrolls report looming the US Dollar is likely to experience fluctuations in the hours ahead. A strong result could boost the ‘Greenback’ and fan the flames of speculation surrounding the Fed’s timeline for reining in quantitative easing.

Euro
EUR/USD – Trading in the Region of 1.3121
After the European Central Bank delivered its rate decision and issued a cautious commentary regarding the fragility of the Eurozone’s recovery, the Euro slumped against several of its main rivals. The news that German exports unexpectedly declined in July put further pressure on the common currency this morning, and the Euro is headed for 5-day declines against many of its peers.

Australian Dollar
AUD/USD – Trading in the Region of 0.9145
Although an Australian performance of construction index slipped from 44.1 to 43.7 the Australian Dollar was supported by the expectation that the RBA won’t implement an additional rate cut this year. Prior to the release of US non-farm payrolls figures the South Pacific asset was set to post an over 2 per cent 5-day advance on the US Dollar.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.7932
With domestic news thin on the ground this week the New Zealand Dollar experienced little movement during the local session, largely retaining gains posted against the US Dollar as commodity-driven assets were boosted by improving export prospects. As the weekend approaches any ‘Kiwi’ movement is likely to occur in response to today’s influential US data.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9554
While today’s US data is set to be the main market mover, Canadian employment figures will also be of particular interest. The ‘Loonie’ could rally against its peers if the Canadian economy adds 20,000 positions as forecast.

Japanese Yen
USD/JPY – Trading in the Region of 99.6000
A pause in the decline of US Treasuries helped the Yen strengthen against its North American counterpart overnight. The Asian asset posted its first gain against the US Dollar for five days, but could shed that advance swiftly is US non-farm payrolls meet expectations.

South African Rand
With the US non-farm payrolls report in the spotlight the Rand was trading in a tight range as the local session opened. A strong improvement in employment is likely to leave emerging-market assets like the Rand floundering.
USD/ZAR – Trading in the Region of 10.1880
As of Friday, 6th September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.186, GBP USD exchange rate was 1.5632, GBP AUD exchange rate was 1.7018, GBP NZD exchange rate was 1.954, GBP CAD exchange rate was 1.6282, GBP JPY exchange rate was 154.9334, and GBP ZAR exchange rate was 15.6556.

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