Daily Currency Report
The Pound is little changed against the Euro and US Dollar ahead of tomorrow’s house price data. Economists are expecting the report to show that UK house prices climbed again in July to their highest value in more than three-years. The currency could also find support from the release of consumer-price inflation data which is expected to come in above the Bank of England’s target of 2%.
The ‘Greenback’ is trading higher against the Japanese Yen due to data showing that the Japanese economy expanded at a slower-than-expected rate in the second quarter of 2013. Official data showed that Japan’s economy expanded by 0.6%, and grew by 2.6% on a year-by-year basis. The Dollar is likely to make further gains ahead of tomorrow’s retail sales data.
The Euro is little changed against most of its peers as investors take a wait-and-see approach this week. The Eurozone is expected to have edged back to growth in the second quarter of the year, the first time since 2011 and is expected to leave its longest recession since the bloc’s conception. The regions GDP data is due for release on Wednesday.
The ‘Aussie’ softened against the US Dollar due to market sentiment waning amid growing concern and uncertainty over whether the US Federal Reserve will begin tapering its monetary stimulus plans.
New Zealand Dollar
The ‘Kiwi’ fell against its U.S. counterpart on Monday, as investors remained cautious before the release of U.S. data this week, amid ongoing uncertainty over the future of the Federal Reserve's stimulus program. The currency failed to make gains despite data showing that house sales in the country jumped by 14.7% on a year-by-year basis.
The ‘Loonie’ is softer against its US relation as investors take a wait-and-see approach to this week’s US data releases. Uncertainty over the Federal Reserve’s plans to taper its monetary easing programme is weighing upon sentiment.
South African Rand
The Rand has firmed against the US Dollar due to local traders returning after a long weekend and having to play catch-up after the currency rallied last week. On Friday the Rand hit a two-week high against the ‘Greenback’ but traders were off for the Women’s Day national holiday.