Money Transfer market update
The Pound declined against the US Dollar for the first time in three-days and weakened against the Euro due to economists expecting that the latest retails sales data will show signs of a slowdown. Sterling rallied against the majority of its peer’s yesterday afternoon after Bank of England policy makers voted unanimously against expanding their stimulus program. Retail sales are expected to rise by just 0.3% in June compared to the 2.1% rise recorded in May.
The ‘Greenback’ has strengthened after rallying against its peers. Yesterday saw the Dollar fall against its peers after Federal Reserve Chairman Ben Bernanke told Congress at his testimonial that the Central Bank’s monetary easing programme is not set in stone. Dollar traders should keep an eye on the release of the latest initial jobless claims figures due for release later this afternoon.
The Euro is little changed against the Pound following yesterday’s decline. The EUR/GBP pair had moved aggressively lower following the release of data showing a unified Bank of England policy committee regarding the Bank’s quantitative easing programme and other strong UK data.
The ‘Aussie’ fell against a number of its peers after the Australian business confidence index for the next three months fell to minus 1 in the second quarter from the 2 in the previous three-month period.
New Zealand Dollar
The ‘Kiwi’ is little changed following yesterday’s comments made by Fed Chairman Ben Bernanke. Consumer confidence in New Zealand fell this month to 119.8 from a three-year high of 123.9 in June. It is thought rises in petrol prices and mortgages is the main cause.
The ‘Loonie’ remains weaker against its US relation after Bank of Canada Governor Stephen Poloz said that the nation’s economy has significant slack and inflation remains muted, limiting the possibility of an interest rate increase. Tomorrow sees the release of a plethora of Canadian data, including the latest Consumer Price Index.
South African Rand
The Rand is holding steady against the US Dollar as economists await the outcome of the South African Reserve Bank’s decision on interest rates. Economists are expecting the Central Bank to keep rates at a four-decade low of 5%.