Daily Report Compare Money Transfer
Over the weekend Angela Merkel’s Christian Democratic Party took the majority vote in the German Federal elections and the Euro advanced against its peers as a result. The common currency was trading within touching distance of a seven-month high against its US counterpart prior to the publication of manufacturing and services PMI for the Eurozone and Germany. With the German manufacturing sector expanding by less than anticipated but German services growth exceeding expectations, Euro fluctuations are likely.
After declining against the US Dollar towards the close of last week the Pound strengthened ahead of Thursday’s UK GDP report. Sterling was softer against the Euro after the common currency was boosted by the German election result. A lack of UK news may limit Pound movement in the hours ahead.
Ongoing speculation regarding whether the Federal Reserve will taper stimulus before the close of the year saw the ‘Greenback’ decline against the Yen, Euro and Pound overnight. Today US Dollar fluctuations could be triggered by the release of Markit PMI, which economists have forecast to come in at 54.0 for September. In the weeks ahead any encouraging US data will add to the case for the Fed trimming easing in October, as hinted at by a Fed official last week.
During the Australasian session stronger-than-forecast Chinese manufacturing data boosted Australia’s trade prospects and helped the ‘Aussie’ gain on several of its main rivals. The South Pacific asset pared recent declines against the ‘Greenback’ as the HSBC/Markit manufacturing gauge for China advanced to 51.2 from 50.1 in September.
New Zealand Dollar
In spite of China’s more significant-than-expected manufacturing sector expansion, the commodity-driven ‘Kiwi’ largely retained losses against peers like the US Dollar overnight as continuing Fed easing speculation weighed on higher-risk assets.
Last week’s shocking decision from the US Federal Reserve helped the ‘Loonie’ approach the weekend trading close to a three-month high against its North American counterpart. Ahead of tomorrow’s domestic retail sales report, Canadian Dollar movement is most likely to be inspired by US news.