Market Volatility Follows Surprisingly Strong Aussie and Kiwi Employment Figures

Published: 9 May 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
GBP/USD – Trading
Prior to the release of UK manufacturing and industrial production figures the Pound was trading in the region of a three-month high against the US Dollar, and with the Bank of England’s rate decision imminent the British currency is in line to experience significant movement in the hours ahead. Industry experts are forecasting that the central bank will leave its benchmark rate at its current level and maintain present easing measures.

US Dollar
USD/GBP – Trading Lower
A second piece of unexpectedly positive German data increased demand for higher-yielding assets yesterday, resulting in the ‘Greenback’ declining against several of its riskier currency rivals. Several pieces of economic news could trigger US Dollar movement in the hours ahead, most notably the ECB’s monthly policy report and US jobless claims data.

Euro
EUR/USD – Trading Higher
Yesterday saw the release of better-than-anticipated German industrial production data. This news, following on from Tuesday’s stronger-than-forecast German factory order figures, allowed the Euro to advance on its currency competitors and climb by 0.6 per cent against its US counterpart. Although the ECB’s monthly policy report and today’s Spanish bond auction could cause Euro fluctuations the common currency is gaining some support from the expectation that tomorrow’s German export figures will show an advance of 0.5 per cent.

Australian Dollar
AUD/USD – Trading Higher
A significantly larger than expected gain in Australian employment allowed the ‘Aussie’ to strengthen to 1.0235 US Dollars during local trade. Although economists expected 11,000 jobs to be added in April, the Australian economy actually gained 50,100 positions last month. The Australian Dollar consequently posted notable gains against several of its most traded-currency peers.
New Zealand Dollar
NZD/USD – Trading Higher
The ‘Kiwi’ rebounded from a five-week low against the US Dollar as employment data for New Zealand revealed that the economy gained 38,000 jobs last month. The better-than-expected result saw the New Zealand Dollar climb to 84.55 US cents during the Australasian session.

Canadian Dollar
CAD/USD – Little Changed
The Canadian Dollar snapped its recent run of gains as Canadian Housing Starts came in just below the expected level. The ‘Loonie’ dipped slightly against the US Dollar, easing away from the previous day’s 12-week high, but recovered losses as trade continued. In the hours ahead Canada’s currency could fluctuate following the publication of the nation’s New Housing Price Index.

Japanese Yen
JPY/EUR – Trading Higher
The Yen strengthened modestly against both the US Dollar and Euro this morning, despite risk-appetite gaining support from several pieces of positive global economic news. Today’s US initial jobless claims figures could be responsible for further Yen movement if they deliver a surprise result.

South Africa Rand
ZAR/USD – Trading Lower
Yesterday the Rand softened as a variety of factors, from the RBNZ’s currency intervention to internal pressures for a rate cut, weighed on the commodity driven currency. Rand movement could be inspired by global economic developments today, but domestic data (including the nation’s industrial production figures) will also be of interest.

As of Thursday, 9th May 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1851, GBP USD exchange rate was 1.5452, GBP AUD exchange rate was 1.5308, GBP NZD exchange rate was 1.8378, GBP CAD exchange rate was 1.5558, GBP JPY exchange rate was 155.5199, and GBP ZAR exchange rate was 13.9441.

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