Fed Meeting Likely to Drive Currency Movement This Week, USD Under Pressure

Published: 29 Jul at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, France, Germany, Greece, Ireland, Italy, Japan, South Africa, Portugal,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1588
Before the publication of UK mortgage approval data the Pound posted a modest advance against the Euro. As the report showed that mortgage approvals for house purchases fell, while lending to small and medium-sized British firms expanded at a record pace, Sterling could fluctuate as the European session progresses.

US Dollar
USD/EUR – Trading in the Region of 0.7535
Slipping Asian stocks and the expectation that today’s US housing data will disappoint caused the ‘Greenback’ to hit a month low against the Yen during Asian trading. Significant USD fluctuations can be expected to occur this week in response to the outcome of the Federal Reserve’s two-day policy meeting.

Euro (Currency of Germany, France, Spain, Italy, Portugal, Greece, Ireland etc)
EUR/USD – Trading in the Region of 1.3268
Ahead of tomorrow’s Spanish GDP and German consumer confidence data, the Euro was holding steady against the US Dollar and British Pound. News from the UK and US could inspire movement in the common currency in the hours ahead.

Australian Dollar
AUD/USD – Trading in the Region of 0.9242
With China’s leading index edging to 99.55 in June from May’s revised 99.72, and falling Asian stocks limiting demand for higher-risk assets, Australia’s Dollar softened against several of its main peers. Tomorrow’s Australian building approvals data could inspire additional ‘Aussie’ fluctuations.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8065
Overnight the ‘Kiwi’ declined against several of its most traded currency rivals in reaction to comments issued by New Zealand’s Prime Minister. After the PM asserted that the New Zealand Dollar remains overvalued the South Pacific asset dropped to 80.71 against the ‘Greenback.’ In the first half of this week domestic economic data to look out for includes New Zealand’s building permits figures and business confidence survey.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9741
The ‘Loonie’ was able to post a third consecutive five-day gain against its US counterpart last week as Canada’s economic outlook was bolstered by significantly better-than-forecast domestic retail sales data. The big piece of Canadian news to watch out for this week is Wednesday’s domestic GDP report.

Japanese Yen
USD/JPY – Trading in the Region of 97.9700
Japan’s Yen advanced on its peers during the local session as Asian stocks slumped in reaction to growth concerns for China and the US. The safe-haven asset climbed against rivals including the US Dollar and Pound.

South African Rand
ZAR/USD – Trading in the Region of 9.7903
As trade began on Monday the Rand softened slightly against the US Dollar is response to data issued by the Reserve Bank of South Africa. The data supported speculation surrounding the central bank issuing another rate cut.
As of Monday, 29th July 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1569, GBP USD exchange rate was 1.534, GBP AUD exchange rate was 1.6687, GBP NZD exchange rate was 1.9114, GBP CAD exchange rate was 1.5749, GBP CNY exchange rate was 9.407, GBP JPY exchange rate was 150.1992, and GBP ZAR exchange rate was 15.0171.

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