AUD Softer After RBA Minutes, GBP/EUR At 16-Month High

Published: 20 May at 5 PM 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 in the Region of 1.6842
On Tuesday Sterling strengthened across the board thanks to a larger-than-forecast gain in UK consumer price inflation. However, if the Bank of England meeting minutes are particularly dovish tomorrow the Pound could give up its advance.

US Dollar
USD/GBP – Trading in the Region of 0.5937
Although the US Dollar’s weakness against the Yen persisted during local trading, the currency was little-moved against the majority of its currency counterparts due to an absence of influential US news.

Euro
EUR/USD – Trading in the Region of 1.3716
While an unexpected decline in German producer prices had a limited impact on the Euro, the common currency was feeling the pressure as investors bet that the European Central Bank will introduce either negative deposit rates, a rate cut or a bond buying scheme in June.

Australian Dollar
AUD/USD – Trading in the Region of 0.9256
Dovish minutes from the Reserve Bank of Australia caused ‘Aussie’ weakness overnight. The RBA intimated that interest rates would remain on hold for the foreseeable future.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8576
Economic data for New Zealand was thin on the ground on Tuesday but risk aversion drove the commodity currency lower. New Zealand’s credit card spending figures could trigger ‘Kiwi’ movement during the Australasian session.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9171
The ‘Loonie’ eased lower after Canada’s wholesale sales registered an unexpected decline in March. Fluctuating commodity prices also had an impact on the Canadian Dollar.

Japanese Yen
USD/JPY – Trading in the Region of 101.3200
A mixed bag of Japanese data (including a report showing a larger-than-predicted increase in the nation’s coincident index) and a risk-off environment helped the Yen trade close to a three-month high against the US Dollar.

South African Rand
USD/ZAR – Trading in the Region of 10.4130
The Rand was feeling the strain on Tuesday as the strike in the South African platinum sector continued and investors bet that the South African Reserve Bank would refrain from increasing interest rates this week.
As of Tuesday, 20th May 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.229, GBP USD exchange rate was 1.6837, GBP AUD exchange rate was 1.8226, GBP NZD exchange rate was 1.965, GBP CAD exchange rate was 1.8367, GBP JPY exchange rate was 170.5711, and GBP ZAR exchange rate was 17.5829.

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