Daily Compare Money Transfer market report
The Euro is trading close to a seven-month low against the Pound due to yesterday’s Italian GDP data weighing upon the single currency. Whilst the UK continues to show signs of making a strong recovery the Eurozone remains weak.
The Pound is little moved against the US Dollar and Euro due to investors taking a wait and see approach to today’s UK jobless claims data. The number of people claiming unemployment benefits in the country is expected to have fallen for a 10th consecutive month in August. Against the Euro, Sterling is likely to go beyond its strongest level in seven months as investors expect that Bank of England Governor Mark Carney will give a positive outlook when he testifies to the Treasury Committee tomorrow.
The ‘Greenback’ rose against a number of its peers ahead of tomorrow’s speech by Federal Reserve Bank of New York President William C. Dudley who is expected to confirm that policy makers in the country will announce a slowing in bond purchases next week.
The ‘Aussie’ is trading higher against many of its most traded peers and managed to hit its highest level since June against the US Dollar after yesterday’s stronger –than-expected Chinese data continued to support the currency. The currency is likely to weaken again on Thursday following the release of Australian jobs figures which are expected to show a 0.1% rise in the unemployment rate which take the overall rate to a four-year high of 5.8%.
New Zealand Dollar
The ‘Kiwi’ is little changed as the market awaits Thursday’s interest rate review by the New Zealand Central Bank which is likely to give analysts their first insight into the impacts of the Bank’s home loan restriction policy. Bank Governor Graeme Wheeler is expected to maintain rates at 2.5%.
The Canadian Dollar is holding steady against the US Dollar and is little moved against its peers in a trading session that has proven to be very quiet so far. The ‘Loonie’ benefitted as Demand for riskier assets improved as the threat of US military action against Syria grew smaller and as the world’s second largest economy, China posted stronger than expected economic data.
South African Rand
The Rand has weakened against the US Dollar and extended losses against many of its other peers after worse-than-expected current account data in the previous session weighed heavily upon the currency. The Rand is likely to weaken further this afternoon if manufacturing data comes in worse than expectations.