CAD Surges on Inflation Gain, EUR Falls as Draghi is Dovish, USD Steady

Published: 27 Nov at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,

Pound Sterling
The Pound posted extensive declines on Friday after UKIP won a by-election and increased political uncertainty in the UK in the run-up to the general election. Although the UK’s Public Borrowing figures came in pretty much as forecast, Sterling softened against almost all of its currency counterparts before the close of trading.

US Dollar
With little in the way of economic reports for the US scheduled for publication on Friday, US Dollar movement was fairly static. The North American currency strengthened modestly on Thursday after US inflation figures surprised to the upside. However, a negative Markit Manufacturing PMI print prevented the US Dollar from making any really sizable gains.

Euro
A dovish speech from European Central Bank (ECB) President Mario Draghi saw the Euro flat-line across the board on Friday. The common currency shed over 0.8% against the Pound, more than 1.0% against the US Dollar and around 1.8% against the Australian Dollar. Draghi asserted that the currency bloc’s recovery wouldn’t be strong and that the ECB is prepared to adjust its asset purchase targets.

Australian Dollar
Overnight a lack of economic reports for the Australian Dollar limited ‘Aussie’ movement. The South Pacific currency did post a modest decline against the US Dollar as iron ore prices softened, but managed to recoup losses and approached the weekend trending 0.8% higher.

New Zealand Dollar
Before the weekend the New Zealand Dollar benefited from a positive credit card spending report. Card spending increased by 1.3% on the month in October following the previous month’s 0.2% gain. Card spending was up 6.7% on the year. The New Zealand Dollar also posted a particularly notable gain against a broadly softening Euro.

Canadian Dollar
The Canadian Dollar strengthened against the Pound and US Dollar on Friday as investors responded to a stronger-than-expected inflation print for Canada. The fact that inflation accelerated 0.3% on the month in October led investors to bet that the Bank of Canada might adjust its stance on interest rates, and the ‘Loonie’ accordingly rallied across the board.
As of Thursday, 27th November 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.262, GBP USD exchange rate was 1.5725, GBP AUD exchange rate was 1.8453, GBP NZD exchange rate was 2.0011, and GBP CAD exchange rate was 1.7833.

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