Compare money transfer FX update
The Pound weakened against the US Dollar, coming close to its lowest-level since May, before new Bank of England Governor Mark Carney makes his first decision as the head of the Central Bank’s Monetary Policy Committee. Against the Euro, Sterling was little changed. Economists are expecting the Bank to maintain its asset-purchasing target at £375 billion; interest rates are expected to remain at a record low 0.5%.
The ‘Greenback’ fell against the Euro and a number of peers as traders speculate whether Friday’s Jobs report for June will be positive enough to move the Federal Reserve closer to slowing its monetary stimulus programme. The Labour Department report on the 5th of July may show U.S. nonfarm payrolls increased by 165,000 jobs,
The Dollar weakened against the Yen due to renewed concerns that the Eurozone crisis is worsening
The Euro is close to a monthly-low against the US Dollar and Pound ahead of the European Central Bank’s latest monetary policy meeting. It is expected that ECB President Mario Draghi will say that the Bank’s policies will remain accommodative. The single currency declined for a second-day about concerns over the stability of the Portuguese government and reignited fears over the Eurozone debt crisis.
The ‘Aussie’ rebounded from its lowest-level since September 2010 on speculation that it fell too fast and as investors speculate over the likelihood of further interest rate cuts by the Central Bank. The recovery is expected to be only temporary as RBA Governor Glenn Stevens said that he wants the currency to weaken further in order to help rebalance the Australian economy.
New Zealand Dollar
The ‘Kiwi’ has come close to a five-year high against its Australian relation after comments by Australian Central Bank governor Glenn Stevens sent the ‘Aussie’ tumbling. Stevens hinted that the Bank had been considering an interest rate cut increasing speculation that a cut could come far sooner than economists expected.
The ‘Loonie’ jumped from a 21-month low against its US relation after the price of Crude Oil soared above $100 per barrel as data showed that US supplies of the resource were dwindling and that political chaos in Egypt could disrupt supplies from the Middle East. The commodity’s price is likely to rise further after the Egyptian army removed Mohamed Mursi from power, raising concerns that Egypt could end up in a civil conflict.
South African Rand
The Rand weakened close to four-day-lows against the US Dollar as pressure is likely to mount on riskier assets ahead of Friday’s key US jobs data. The Dollar has been boosted this week by market expectations that US non-farm payrolls numbers due out on Friday will keep the Federal Reserve on track to scale back its monetary easing programme, a move that would drain billions of Dollars from emerging markets such as South Africa.