Compare FX currency update
Fears that the European Central Bank might allude to the need for additional fiscal stimulus at this week’s policy meeting left the Euro trading close to a six-week low against its North American counterpart. The Euro was also softer against the Pound before the publication of manufacturing PMI for Germany and the Eurozone.
Last week’s lacklustre Eurozone data and comparatively positive UK manufacturing PMI boosted the GBP/EUR pairing, allowing the Pound to climb by the most for five weeks against the Euro. However, while Sterling largely retained gains against the Euro over the weekend the British currency begins the week locked in a bearish relationship with the US Dollar. Today’s better-than-expected UK construction PMI could cause additional Pound movement.
With the odds of the Federal Reserve tapering stimulus before the end of the year supported by the recent FOMC policy statement and Friday’s surprisingly strong manufacturing report, the ‘Buck’ broadly strengthened at the close of last week. The US Dollar continues to trade strongly against its European rivals ahead of today’s US factory orders data.
An unexpected spike in Australian retail sales helped the ‘Aussie’ recover losses against several of its most traded peers during the local session. While economists forecast a monthly sales gain of 0.4 per cent in September sales actually increased by 0.8 per cent, the largest jump for seven months.
New Zealand Dollar
After posting a five-day decline against the US Dollar on Friday, the ‘Kiwi’ begins the week little changed against several of its major currency rivals. With China’s HSBC/Markit services PMI scheduled for release tomorrow and Fed tapering speculation mounting, further New Zealand Dollar movement can be expected.
While encouraging Canadian growth data supported the ‘Loonie’ last week, the commodity-driven asset fluctuated as the price of crude oil dipped and the likelihood of the Federal Reserve trimming stimulus increased. With domestic data thin on the ground today, further Canadian Dollar news may be inspired by US developments.