US Federal Reserve Policy Meeting To Cause Major Currency Volitility

Published: 17 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, Japan, South Africa,

Pound Sterling
GBP/USD – Trading Higher, 1.5713
Last week the Pound hit a four-month high against the US Dollar and the British currency was able to consolidate recent gains this morning as an industry report revealed that the asking price of UK homes rose this month. Sterling was little changed against the Euro and is unlikely to experience further significant movement today. Tomorrow’s UK CPI and PPI figures will be of interest.

US Dollar
USD/EUR – Trading Higher, 0.7506
With the Federal Reserve’s highly anticipated two-day policy meeting beginning tomorrow, the US Dollar was able to climb against several of its most traded peers during the Asian session. The US Dollar advanced on the Yen and Euro as industry experts debate what the Fed will say about tapering easing.

Euro
EUR/USD – Little Changed, 1.3337
Although the Euro is trading slightly lower against the US Dollar this morning, a slow news day is likely to limit additional fluctuations in the hours ahead. Although tomorrow’s German/Eurozone ZEW economic sentiment surveys will be of interest investors will largely be looking ahead to the Federal Reserve’s policy meeting.

Australian Dollar
AUD/USD – Trading Higher, 0.9625
After enjoying a modest rebound against the US Dollar before the weekend the ‘Aussie’ was able to extend gains during the local session ahead of the publication of minutes from the Reserve Bank of Australia’s latest policy meeting. Australian Dollar volatility is also likely to occur this week in response to news from the US.

New Zealand Dollar
NZD/USD – Trading Higher, 0.8089
With a report showing that New Zealand’s consumer confidence hit a three-year high in the second quarter, the ‘Kiwi’ was able to hit its highest level against the Australian Dollar since May. The New Zealand Dollar also strengthened against its US counterpart. A key piece of domestic data to watch out for this week is New Zealand’s GDP figures – due to be published on Wednesday.

Canadian Dollar
CAD/USD – Little Changed, 0.9851
Last week’s disappointing manufacturing data saw the Canadian Dollar end trade slightly lower against the ‘Greenback.’ The ‘Loonie’ could recoup losses however if this afternoon’s Canadian existing home sales figures meet or exceed estimates.

Japanese Yen
USD/JPY – Yen Stronger, 95.0500
During the Asian session demand for the safe-haven Yen decreased as global stocks rallied. The currency consequently sipped against all of its most traded peers, shedding 0.7 per cent against the US Dollar.

South African Rand
ZAR/USD – Little Changed, 9.9450
The Rand continues to trade just below the psychological 10 Rand per Dollar level as investors focus on this week’s most volatile development, the Federal Reserve’s policy meeting. Wednesday is South Africa’s major economic news day, with inflation rate and current account figures both due for publication.

As of Monday, 17th June 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1762, GBP USD exchange rate was 1.5716, GBP AUD exchange rate was 1.6467, GBP NZD exchange rate was 1.9662, GBP CAD exchange rate was 1.6014, GBP JPY exchange rate was 148.8238, and GBP ZAR exchange rate was 15.6521.

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