Exchange Rate News: EUR/GBP Fluctuates on Surprise UK Deficit, USD/EUR Struggling

Published: 22 Oct at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Japan, South Africa,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1817
Although the Pound was little changed against the Euro and US Dollar as European trading began, after UK public finance figures surprised expectations Sterling fluctuated against several of its peers. Today's influential US data release could spark significant currency market movement as the day progresses.

US Dollar
USD/EUR – Trading in the Region of 0.7310
Although economists have forecast that the US economy added 180,000 positions in September (up from Augusts’ gain of 169,000) if the unemployment rate holds at 7.3 per cent as forecast the US Dollar will remain under pressure and could extend declines against its major currency counterparts.

Euro
EUR/USD – Trading in the Region of 1.3676
In a quiet news day for Europe, the Euro was holding steady against its British rival. The common currency was hovering close to an eight-month high against the ‘Buck’ before US employment figures were published.

Australian Dollar
AUD/USD – Trading in the Region 0.9659
As BHP Billiton Ltd positively revised its output forecast for Iron ore, a major Australian export, the ‘Aussie’ advanced on several of its most traded peers. If today’s US employment report disappoints and adds to the case for the Fed holding off from tapering stimulus until next year, further Australian Dollar gains are likely.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8452
In spite of a lack of economic data for New Zealand the ‘Kiwi’ remained supported during Australasian trading as investors turned to higher-yielding assets before the publication of US employment data.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9713
The ‘Loonie’ reversed recent gains during local trading as investors bet that the Bank of Canada will negatively revise its national growth forecasts when it meets on Wednesday. However, if today’s retail sales report surprises to the upside the Canadian Dollar could recover losses.

Japanese Yen
USD/JPY – Trading in the Region of 98.2900
A disappointing trade balance report for Japan knocked the Yen yesterday, and the Asian asset largely retained declines overnight in spite of the fact that the US Dollar broadly softened prior to the release of US non-farm payrolls data.

South African Rand
USD/ZAR – Trading in the Region of 9.7950
As the local session opened the Rand was holding steady against the US Dollar having gained on its North American peer as the odds of Fed tapering declined. While today’s US non-farm payrolls report is likely to influence Rand movement in the hours ahead investors will also be focusing on Wednesday’s inflation figures for South Africa.
As of Tuesday, 22nd October 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1781, GBP USD exchange rate was 1.6234, GBP AUD exchange rate was 1.6727, GBP NZD exchange rate was 1.907, GBP CAD exchange rate was 1.6708, GBP JPY exchange rate was 159.3399, and GBP ZAR exchange rate was 15.8088.

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