US Dollar At 8-Month Low Ahead Of Fed Decision GBP/USD

Published: 17 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
As the European session opened the Pound was trading in the region of an eight-month high against the US Dollar. With UK inflation slowing to 2.7 per cent in August year-on-year (as expected by economists) Sterling could experience modest additional movement as trade progresses.
GBP/EUR – Trading in the Region of 1.1920

US Dollar
USD/EUR – Trading in the Region of 0.7492
Tomorrow weeks of speculation regarding the Federal Reserve tapering quantitative easing will come to an end as the Federal Open Market Committee delivers its highly-anticipated policy statement. If the central bank tapers easing by 15 billion Dollars as expected the ‘Greenback’ could recover recent losses, but if the statement is dovish in tone gains may be limited.

Euro
EUR/USD – Trading in the Region of 1.3352
If economists are correct in their prediction that the German ZEW economic sentiment survey rose from 42 in August to 45 in September the Euro could extend gains against the US Dollar. As it stands the common currency is trading close to a three-week high against the ‘Greenback’.

Australian Dollar
AUD/USD – Trading in the Region of 0.9314
By the close of the local session the ‘Aussie’ had fallen against the US Dollar and ‘Kiwi’ as investors reacted to minutes from the most recent Federal Open Market Committee policy meeting. The minutes stressed that the central bank believes a softer Australian Dollar will be beneficial to the nation’s economic recovery, and the ‘Aussie’ accordingly dipped.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8179
The ‘Kiwi’ advanced on peers like the US and Australian Dollars during Australasian trading as central bank concerns weighed on both currencies. With market movement dominated by US news this week New Zealand Dollar fluctuations could be limited ahead of the Federal Open Market Committee policy statement.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9690
Although the Canadian Dollar has edged away from the month-high recorded against the US Dollar yesterday, the commodity-driven asset continues to derive support from the shock resignation of the hawkish candidate for the position of Chairman of the Federal Reserve. Today further ‘Loonie’ movement could be inspired by a domestic manufacturing shipments report and US inflation data.

Japanese Yen
USD/JPY – Trading in the Region of 99.1600
During the Asian session the Yen advanced on its US counterpart as speculation regarding the Fed tapering quantitative easing reached fever pitch ahead of the FOMC policy meeting.

South African Rand
USD/ZAR – Trading in the Region of 9.8269
The Rand consolidated recent gains against the US Dollar yesterday as the probability of the Federal Reserve bringing an end to accommodative easing in the near future dimmed. As the local session opened the South African currency was trading in a tight range as investors await the outcome of the FOMC meeting.
As of Tuesday, 17th September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1908, GBP USD exchange rate was 1.5906, GBP AUD exchange rate was 1.7002, GBP NZD exchange rate was 1.9316, GBP CAD exchange rate was 1.6379, GBP JPY exchange rate was 157.7579, and GBP ZAR exchange rate was 15.6003.

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