Comparing Money Transfers Currency Daily update
The Pound dropped to a five-week low against the US Dollar after new Bank of England Governor Mark Carney signalled that policy makers will maintain interest rates at a record low for longer than investors expected. Against the Euro, Sterling came close to its weakest-level since April against the Euro. The Bank of England’s policy committee maintained its asset purchasing target at £375 billion and kept interest rates at 0.5%.
The ‘Greenback’ gained against the majority of its peers as the markets await the release of data that is expected to show that US companies added enough jobs to lower the countries unemployment rate.
‘Cable’ rose toward its strongest level in more-than-a-month against the Yen, Euro and Pound while the Dollar Index touched a five-week high amid speculation that further improvement in the U.S. economy will prompt the Federal Reserve to curb stimulus.
The Euro strengthened against the Pound after the Bank of England made dovish comments and maintained rates at the record low level of 0.5%. Fears over a breakdown of the Portuguese government have been allayed adding support to the Euro.
The single currency is likely to weaken over the course of the session however as the markets await the release of the latest US jobs data. Also weighing upon the currency is the release of data which showed that France’s trade gap widened in May.
The ‘Aussie’ extended its gains against the Pound and US Dollar as the market awaits the release of the latest US jobs data. Yesterday saw the currency strengthen after the European Central Bank and Bank of England indicated that it would be resuming with looser monetary policy.
New Zealand Dollar
The ‘Kiwi’ is heading for fresh weekly gains after the Central Banks of Australia, Europe and the UK all hinted that they would be continuing their monetary easing policies.
The ‘Loonie’ has pared its losses after the Central Banks of England and Europe assured investors that interest rates will remain low in their respective economies. The currency is vulnerable however as investors await the release of the latest jobs data out of the USA and Canada. The price of Crude oil could also add to volatility after it declined following an ease in tensions in the Middle East.
South African Rand
The Rand was steady against the US Dollar but investors are nervous ahead of the latest US jobs data. The data is likely to give a clue about the timing of the Federal Reserve’s withdrawal of stimulus. Domestic mining concerns were also hanging over the currency.