GBP Weaker After Inflation Data, EUR Also Declines

Published: 25 Mar at 12 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 1.6508
Sterling slumped beyond a six week low against the US Dollar as UK CPI data confirmed that domestic inflation slowed to its lowest level for at least four years. The Pound may well retain today’s declines until Thursday and the publication of UK retail sales figures.

US Dollar
USD/GBP – Trading in the Region of 0.6058
While the ‘Greenback’ softened slightly yesterday as US manufacturing PMI dropped by more than expected, the safe-haven currency could recover losses in the hours ahead if the domestic consumer confidence gauge shows the improvement forecast.

Euro
EUR/USD – Trading in the Region of 1.3817
The common currency declined during the European session as the Ifo German business climate and expectations measures fell by more than projected. However, Euro losses were a little limited as the IFO current assessment index unexpectedly advanced.

Australian Dollar
AUD/USD – Trading in the Region of 0.9148
Overnight the ‘Aussie’ put in an impressive performance against almost all of its most traded currency counterparts. Hopes that the Reserve Bank of Australia might increase interest rates before the end of the year pushed the Australian Dollar higher against its US and British rivals.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8559
With Ukraine tensions on the backburner and risk appetite returning the ‘Kiwi’ was able to close the local session in a stronger position against almost all of its peers. This week’s domestic trade balance data will be the main local cause of New Zealand Dollar movement.

Canadian Dollar
CAD/USD – Trading in the Region of 0.8924
Once again Canadian data is thin on the ground today. Fluctuations in the commodity-driven currency will most likely be occasioned by US developments.

Japanese Yen
USD/JPY – Trading in the Region of 102.2500
With investors turning to higher risk rivals, the safe-haven Yen slid slightly overnight. The Japanese asset was little affected by a report showing an improvement in domestic small business confidence.

South African Rand
USD/ZAR – Trading in the Region of 10.7342
During the local session the Rand was trading in a narrow range against peers like the US Dollar. Rand volatility is likely to be limited ahead of tomorrow’s Reserve Bank rate decision.
As of Tuesday, 25th March 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1964, GBP USD exchange rate was 1.6532, GBP AUD exchange rate was 1.8045, GBP NZD exchange rate was 1.9287, GBP CAD exchange rate was 1.846, GBP JPY exchange rate was 169.1038, and GBP ZAR exchange rate was 17.7472.

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