Daily Compare Money Transfer currency report
The Pound is little changed against the US Dollar and is close to a three-month high against the Euro ahead of the release of data which is expected to show that UK services output stayed close to its highest-level in more than six years in August. Against the Euro, Sterling hit a three-month high following yesterday’s better-than-expected manufacturing PMI data. At tomorrow’s Bank of England policy meeting, interest rates are expected to be maintained at the record low-level of 0.5%.
The ‘Greenback’ maintained a two-day high against the Japanese Yen and hit a six-week high against the Euro after data showed that manufacturing activity in the world’s largest economy expanded at its fastest pace since April 2011. The currency is likely to find further support later in the week due to economists expecting that tomorrow’s jobless claims data will show further signs of improvement.
The Euro is trading close to a six-week low against the US Dollar and is near to a three-month low against the Pound. The single currency remains under pressure due to expectations that the European Central Bank would reiterate its pledge to maintain interest rates during Thursday’s policy meeting.
The ‘Aussie’ hit a two-week high against the US Dollar after data showed that the Australian economy expanded at a faster pace than expected. Australia’s Gross Domestic Product expanded by 0.6% in the second quarter of the year. Forecasters had been calling for a 0.5% rise.
New Zealand Dollar
The ‘Kiwi’ strengthened against the Pound and other peers due to the increased demand for riskier assets. The delay in military action against Syria and the positive data out of China and Europe improved risk sentiment which in turn benefitted the New Zealand currency.
The ‘Loonie’ is little moved against its peers as investors wait for the outcome of the Bank of Canada’s latest policy meeting. Investors are expecting the Central Bank to maintain interest rates at 1.00%, a dovish statement is likely to bolster the currency.
South African Rand
The Rand made gains against some of its peers due to the increase in demand for riskier assets and as the value of commodities such as gold and iron ore increased. The currency also found some support after the South African government hinted that it will intervene in the ongoing wage disputes that have harmed the economy. A wave of strikes from all sectors continue as workers complain that they are paid a ‘slaves wage’.