Currency Report Compare Money Transfer
The Federal Reserve’s decision to fly in the face of weeks of expectation for a so called ‘Sep-taper’ saw the US Dollar plummet against its peers during the local session, with the ‘Greenback’ hitting an almost seven-month low against the Euro and eight-month low against the Pound. With the central bank unexpectedly maintaining bond purchases at 85 billion Dollars, demand for safe-haven assets declined and higher-risk currencies advanced.
As markets responded to the Federal Reserve’s shock decision to maintain asset purchases at their previous level the Pound enjoyed its most significant surge against the US Dollar for three years. After brushing $1.6163 Sterling continues to trade in the region of an eight-month high against its North American rival. The Pound slipped slightly against the Euro ahead of the publication of UK retail sales data.
After softening modestly against the Pound yesterday, the Euro recouped losses prior to the release of UK retail sales data. The common currency also advanced on a broadly softening US Dollar. An absence of economic news for the Eurozone may limit Euro fluctuations during the European session.
In spite of the Federal Open Market Committee maintaining bond purchases at 85 billion Dollars, the ‘Aussie’ posted widespread declines overnight as speculation that the Reserve Bank of Australia will cut rates piled pressure on the currency. The Australian Dollar dropped against its New Zealand cousin but did manage to gain by 0.7 per cent on a bearish Yen.
New Zealand Dollar
Better-than-forecast domestic growth data, coupled with surprising US news, triggered a ‘Kiwi’ surge during Australasian trading. With the South Pacific nation’s economy expanding by 0.2 per cent in the second quarter from the first, the New Zealand Dollar rallied to a four-month high against the ‘Greenback’ and recorded impressive gains against the Yen.
During North American trading the ‘Loonie’ reversed recent declines and jumped to a three-month high against its US counterpart. As higher-risk currencies benefited from the news that the Fed will continue asset purchases at 85 billion Dollars, the Canadian Dollar largely retained gains ahead of tomorrow’s influential domestic inflation figures.