FX Compared daily currency report
The Euro is little moved against the Pound but is hovering close to an eight-month high against the US Dollar. The single currency is likely to find support during today’s session after the latest German Producer Prices data came in better-than-forecast. Wednesday sees the release of Consumer confidence data for the Eurozone and Thursday the latest bout of PMI data. All of the data is forecast to come in better than the previous month; if it doesn't then the Euro is likely to soften.
The Pound is little changed against the US Dollar after data showed that house prices in the UK rose by their biggest margin since February. Against the Euro, Sterling was holding steady as investors await the release of Friday’s UK GDP figures which are expected to show that the nation’s economy expanded at a faster pace in the third quarter. If the data beats forecasts then investors are likely to raise their bets that the Bank of England will raise interest rates sooner-than-expected.
The US Dollar recovered ground against most of its peers and edged higher against the Japanese Yen after the Asian nation reported a 15th consecutive month of trade deficits. The ‘Greenback’ edged higher despite investors remaining uncertain as to when the Federal Reserve will choose to taper its monetary easing programme. Later in today’s session the latest new homes sales data is released and tomorrow sees the publication of the delayed non-farm payrolls data.
The ‘Aussie’ climbed to a four-month high in Asian trading after it found support from a rise in commodity prices and increased expectations that the Reserve Bank of Australia has finished cutting interest rates. The value of Australia’s most exported commodity, iron ore, strengthened due to signs that activity in the Chinese steel industry is increasing.
New Zealand Dollar
The ‘Kiwi’ found support against many of its most traded peers after data showed that the number of immigrants into the small Oceanic country climbed to its highest-level in a decade. According to the country’s statistics bureau the number of new arrivals exceeded departures by 2,740 in September, the highest level recorded since 2003.
The Canadian Dollar is little moved against its US relation as doubt remains over whether the 16-day long US government shutdown weakened Canada’s biggest trading partner. The currency is likely to find some support today after commodity prices edged higher.
South African Rand
The Rand is little moved against the US Dollar but is expected to be affected by the release of South Africa’s medium-term budget policy statement and US employment data. Statistics South Africa will also release September consumer inflation data on Wednesday, but that is not expected to make a significant impact on the Rand.