Daily Compare money transfer market report
The Pound is poised for a second weekly advance against the US Dollar as economists await the release of a report that is expected to show that the UK’s budget deficit narrowed in June from the previous year. The budget shortfall is expected to narrow to £8 billion, down from the £11.8 billion recorded in the previous year. In the past three months Sterling has advanced by 2.2%. Against the Euro it is little changed.
The ‘Greenback’ is softer against the Pound and Euro after it made strong gains yesterday. The Dollar had made gains after the latest US jobless claims and regional manufacturing data came in stronger-than-expected. Today the US currency softened against the Euro after German data came in better-than-forecast.
The Euro edged up against the US Dollar and Sterling after German Producer Prices showed signs of improvement. In June they rose to 0.0%, up from the -0.3% recorded in May. The currency could receive further support once details of the latest G-20 meeting being held in Moscow is revealed.
The ‘Aussie’ is expected to make its first weekly gain since mid-June as investors await the release of next week’s inflation report that is likely to influence the nation’s Central Banks interest rate decision in August.
New Zealand Dollar
The ‘Kiwi’ is also set to make a weekly gain after the US Federal Reserve Chairman Ben Bernanke reiterated that the Central Bank is set on winding down its stimulus programme. Aiding the currency was the release of data showing that migration into the country reached a four-year high as fewer natives left the country.
The ‘Loonie’ is higher against its US relation due to rise in oil prices and positive US economic data.
South African Rand
The Rand is steady against the US Dollar but remains under pressure as the weekend approaches. The South African currency is vulnerable because of domestic factors such as labour tensions in the mining industry that has slowed the flow of commodities for export. Also weighing upon the currency were comments made by the Central Bank. It cut its growth forecasts for the country and sounded concerned over the mining sector and electricity supplies.