Compare money transfer daily market report
The Pound has weakened for a fifth-day against the US Dollar as investors await the outcome of today’s latest Bank of England policy decision, marking its longest losing streak since March. Against the Euro, Sterling was little changed ahead of the release of an industry report which is expected to show that manufacturing in the UK expanded in July for a fourth consecutive month.
The ‘Greenback’ softened for the first time in three-days after the Federal Reserve chose to maintain its $85 billion monthly bond purchasing programme. Policy makers cited the nation’s persistently low inflation as hampering the USA’s economic expansion.
The Euro is softer against the majority of its peers ahead of the release the European Central Bank’s latest interest rate announcement. Economists are expecting the Bank to maintain rates at the record low level of 0.50%. Today also sees the release of manufacturing PMI data for a number of European nations as well as the overall PMI for the Eurozone.
The Australian Dollar fell to its lowest-level in three-years as investors cut their bets that the country’s Reserve Bank will reduce interest rates next week. Speculation over interest rates outweighed the better-than-expected manufacturing data out of China, Australia’s biggest trading partner.
New Zealand Dollar
The ‘Kiwi’ weakened against the US Dollar after the Federal Reserve chose to maintain its stimulus programme. Against the ‘Aussie’ it hit a fresh five-year high as the two Oceanic economies continue to diverge.
The ‘Loonie’ ended Wednesday’s session higher against its US relation due to the ‘Greenback’ softening and as the Federal Reserve expressed its concerns over the impact of inflation on the economy. Substantial gains in prices for crude oil and natural gas also bolstered the Canadian Dollar.
South African Rand
The Rand has weakened slightly against the US Dollar and remains vulnerable to further losses ahead of the release of this week’s US jobs data. Yesterday’s data release showing that South Africa’s trade gap narrowed for a second consecutive month in June was largely ignored by traders.