Daily Compare money transfer currency report
The Pound is little changed against the Euro and US Dollar despite data showing that UK house prices rose to an almost seven year high, adding support to the nation’s economic recovery. The currency failed to make much movement due to investors awaiting the release of data which is expected to show that inflation has stayed above the Bank of England’s target level of 2%. UK consumer prices are forecast to come in at 2.8%.
The ‘Greenback’ reached its highest-level in a week against the Japanese Yen but is little changed against the Pound and Euro as investors await the release of the latest US retail sales data. The US commerce department is expected to say that retail sales climbed by 0.3% in July. The further signs of improvement in the world’s largest economy are likely to yet again increase speculation that the Federal Reserve may begin tapering its monetary easing policy in the near future, with many economists expecting the paring to begin in September.
The Euro looks set to make gains against the US Dollar and other peers if today’s ZEW Index and tomorrow’s GDP figures come in as expected. Analysts are expecting the GDP of the Eurozone to have expanded by 0.2% in the second quarter, sending the Eurozone economy back into growth for the first time since 2011.
The ‘Aussie’ has fallen for a second day against the US Dollar ahead of the release of US retail sales data. The sales figures are expected to show improvement and are likely to give further support to the case for the Federal Reserve to taper its monetary stimulus. The ‘Aussie’ also declined against most of its peers ahead of business confidence data which could affect the outlook for the Reserve Bank of Australia’s monetary policy.
New Zealand Dollar
The ‘Kiwi’ has slipped below 80 US cents ahead of retail sales figures in the US, which are expected to show consumer spending in the world's biggest economy rose for a fourth-month. New Zealand second-quarter retail sales will get some attention tomorrow, and are expected to show consumer spending rose 1.3% in the quarter in another sign the local economic recovery is building.
The ‘Loonie’ declined for the first time in three days against the US Dollar after the currency failed to breach a key technical level, creating speculation that the currency’s run of gains has come to an end. The currency could make some gains however if the US retail sales data comes in better-than- expected.
South African Rand
The Rand is struggling against a bolstered ‘Greenback’ as investors anticipate upbeat data out of the world's biggest economy. The currency is not likely to make much movement until the US retail sales data released this afternoon and is likely to take more strain than its peers as investors worry about labour strife in the mining sector that has slowed the production of minerals for export.