money transfer comparison currency update
The Pound is little moved against the US Dollar and Euro as investors await the release of data which is expected to show that the UK economy expanded at its fastest pace in three years in the third quarter. Economists are expecting the data to show that GDP expanded by 0.8%, up from the previous reading of 0.7%. The currency came under some pressure yesterday after Bank of England Governor Mark Carney said that he won’t rush to raise interest rates even if unemployment reaches his target of 7%.
The US Dollar is under pressure against the Euro and Pound following yesterday’s mixed data releases. US consumer confidence fell unexpectedly to a seven month low in November whilst the number of new building permits issued soared to the highest level in five years. The mixed U.S. economic data did little to soften expectations that the Federal Reserve will start to taper its stimulus program at one of its upcoming policy meetings.
The Euro made gains against the safe haven Yen and Swiss Franc after Germany finally managed to agree to the formation of a coalition government. Following a night of intense negotiations Angela Merkel’s Christian Democrats reached an accord with the Social Democratic Party after reaching deals on issues such as a minimum wage and tax increases. Further gains are unlikely after data out of France and Spain came in below forecasts.
The ‘Aussie’ continued its decline against most of its peers as traders take their most bearish stance on the currency in two months after the Reserve Bank of Australia once more warned that the currency is overvalued. The Central Bank’s policy makers have stepped up comments on the currency in recent weeks after the U.S. Federal Reserve chose to refrain from tapering stimulus in September, a move which spurred the Aussie to rebound from the three-year low it reached in August.
New Zealand Dollar
The ‘Kiwi’ is holding near a five-year high against its Australian relation as traders favour the smaller Oceanic nation. Data released in Asian trading showed that New Zealand’s trade deficit was at its smallest since the mid 1990’s due to the strong demand for the nation’s major export of dairy goods.
The Canadian Dollar weakened for a third day against the US Dollar as oil prices continue to soften in the wake of a deal reached between global powers and Iran.
South African Rand
The Rand fell against most of its peers following yesterday’s worse-than-forecast GDP data for South Africa. The disappointing data caused traders to offload the currency after it showed that the South African Central Bank’s target for growth of 1.9% in 2013 will not be reached.