Exchange Rates Outlook for Pound Sterling, Dollar, Euro, Aussie & Kiwi Dollars

Published: 23 Sep at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany, Japan, South Africa,

Pound Sterling
With UK news a little lacking for the first half of the week, Pound movement may be inspired by data from the US and Eurozone. While the German election result prompted declines in the GBP/EUR pairing, Sterling was slightly stronger against the US Dollar as the market weighs the odds of the Federal Reserve tapering stimulus.
GBP/EUR – Trading in the Region of 1.1860

US Dollar
USD/EUR – Trading in the Region of 0.7388
Although yesterday’s US existing home sales and initial jobless claims reports showed improvement, the US Dollar continued trading at multi-month lows against peers like the Euro and Pound. The ‘Greenback’ is also in line to post notable five-day declines against the Australian and New Zealand Dollars.

Euro
EUR/USD – Trading in the Region of 1.3531
A decisive victory for Angela Merkel in the German Federal elections helped the Euro advance on peers including the US Dollar and Pound. The common currency could fluctuate today in the wake of manufacturing/services PMI for Germany and the Eurozone. While manufacturing PMI for both the currency bloc and its largest economy expanded by less-than-hoped, services PMI exceeded expectations.

Australian Dollar
AUD/USD – Trading in the Region of 0.9421
After softening against the US Dollar at the close of last week the ‘Aussie’ recouped some losses following the release of encouraging manufacturing data for China. With the HSBC/Markit gauge advancing by notably more than expected, Australia’s trade prospects were boosted and the nation’s currency gained support.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8376
Although strong Chinese manufacturing figures supported the South Pacific ‘Aussie’, the ‘Kiwi’ failed to recover ground against its US rival. While today’s US news may cause New Zealand Dollar movement, investors will also be looking ahead to tomorrow’s local trade balance figures.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9721
As the European session opened the ‘Loonie’ remained trading close to a three-month high against its US counterpart. Tomorrow’s domestic retail sales figures could help the Canadian Dollar extend recent gains if sales increase by the 0.5 per cent expected.

Japanese Yen
USD/JPY – Trading in the Region of 98.8900
Federal Reserve easing speculation helped the Yen advance on the US Dollar during Australasian trading. Although the ‘Greenback’ received some support from comments issued by a Fed official regarding the likelihood of stimulus being trimmed in October, the USD/JPY pairing is still trading close to the lows recorded in the immediate aftermath of last week’s Federal Open Market Committee meeting.

South African Rand
USD/ZAR – Trading in the Region of 9.6713
Strong Chinese manufacturing data helped the Rand gain modestly against the US Dollar as the local session opened. Wednesday’s consumer confidence report for South Africa is the next piece of domestic data worth noting.
As of Monday, 23rd September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1888, GBP USD exchange rate was 1.6041, GBP AUD exchange rate was 1.7029, GBP NZD exchange rate was 1.9176, GBP CAD exchange rate was 1.6498, GBP CNY exchange rate was 9.8185, GBP JPY exchange rate was 158.429, and GBP ZAR exchange rate was 15.7784.

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