Money transfer comparison update
After Federal Reserve Chairman Ben Bernanke disappointed market expectations with his policy announcement the Pound was able to advance on a broadly softening US Dollar. Sterling also benefited from speculation that the British currency’s recent decline has been overdone. With UK news thin on the ground today further Pound fluctuations are most likely to result from global economic developments.
As hopes that the tapering of US quantitative easing would begin soon were dashed by the FOMC minutes and Fed Chairman Ben Bernanke’s announcement, the US Dollar fell against the majority of its main currency rivals. Bernanke stated that until US inflation and employment rates improve accommodative stimulus will be maintained. The Dollar consequently shed 1.1 per cent against the Euro and fell against the Pound and Yen. Additional ‘Greenback’ movement could occur in response to the US monthly budget statement, due out at 19:00 GMT.
The Euro was able to recoup recent losses against the US Dollar and advance to 1.2923 as higher-risk currencies were bolstered by the increased likelihood of the Federal Reserve maintaining stimulus in the months ahead. Common currency volatility may occur today in reaction to the publication of the European Central Bank’s monthly report.
Despite domestic data showing an unexpected rise in the Australian unemployment rate, the ‘Aussie’ was able to climb to a two-week high against the ‘Greenback’ as commodity driven currencies surged in response to US developments. Although the Australian economy added 10,300 jobs in June (rather than stagnating as forecast) the unemployment rate hit 5.7 per cent. The news saw the Australian Dollar tumble against its New Zealand counterpart, but the South Pacific currency still advanced to 92.75 against the US Dollar.
New Zealand Dollar
In the wake of the Federal Reserve’s intimations regarding tapering stimulus in the US the ‘Kiwi’ leapt by 1.3 per cent against the US Dollar, achieving a three-week high. The New Zealand Dollar was further supported by data showing an expansion in domestic manufacturing.
As markets went into overdrive following Federal Reserve Chairman Ben Bernanke’s announcement the ‘Loonie’ fluctuated, but finally closed the local session trading moderately higher against the US Dollar. Today’s Canadian new housing price index could be responsible for further Canadian Dollar movement