Exchange Rate News: Yellen Comments Inspire Currency Movement

Published: 12 Feb at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Japan, South Africa,

Pound Sterling
GBP/USD – Trading in the Region of 1.6453
After enjoying its strongest gains against the Euro for two-weeks, the Pound’s advance ended as investors speculated on the likely contents of the Bank of England’s inflation report. Sterling volatility is likely to occur today.

US Dollar
USD/GBP – Trading in the Region of 0.6079
Fed Chairman Janet Yellen’s fairly hawkish comments lent the ‘Greenback’ support yesterday, but the safe-haven US Dollar shed gains prior to the publication of advance US retail sales figures. If sales stagnated in January, as forecast by economists, the US Dollar could come under pressure.

Euro
EUR/USD – Trading in the Region of 1.3633
The Euro began local trading slightly weaker against peers like the Pound and US Dollar. Today’s industrial production report for the Eurozone is forecast to show a decline, but an unexpected result could inspire Euro movement.

Australian Dollar
AUD/USD – Trading in the Region of 0.9064
A surprising fall in Australia’s Westpac consumer confidence index piled pressure on the ‘Aussie’ overnight. However, the South Pacific currency was able to stage an impressive rebound after China’s trade data surpassed forecasts.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8358
While China’s trade data helped the ‘Kiwi’ advance on the majority of its currency counterparts, gains were a little limited as an earlier report revealed an unexpected drop in card spending in New Zealand.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9106
A decline in Canadian housing starts saw the ‘Loonie’ slip against its US counterpart on Monday and the commodity-driven currency was little changed after the Canadian Finance Minister presented his budget report. With significant economic news for Canada thin on the ground today, ‘Loonie’ movement is more likely to be driven by US developments.

Japanese Yen
USD/JPY – Trading in the Region of 102.5200
In the wake of Janet Yellen’s hawkish remarks regarding US fiscal policy, the Yen fell as investors pursued higher-risk assets. The Yen was also affected by disappointing machine order figures for Japan.

South African Rand
USD/ZAR – Trading in the Region of 10.9412
Yesterday’s unexpected decline in South Africa’s unemployment rate lifted the Rand, and the currency was able to extend gains and hit a two-week high against the US Dollar as Chinese trade data beat estimates. Today’s South African retail sales figures could inspire further Rand fluctuations.
As of Wednesday, 12th February 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2223, GBP USD exchange rate was 1.6609, GBP AUD exchange rate was 1.8407, GBP NZD exchange rate was 1.9956, GBP CAD exchange rate was 1.8265, GBP CNY exchange rate was 10.0693, GBP JPY exchange rate was 170.2214, and GBP ZAR exchange rate was 18.2697.

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