Compare money transfer update
The Pound is little changed against the US Dollar and Euro as economists await the release of the latest mortgage data, which is expected to show that UK banks increased lending for home loans in June. Mortgage approvals rose to 38,300 in June, up from the 36,102 in May. The currency found some support from improved sentiment following the announcement of the birth of the UK’s future King, and as speculation mounts this week that the UK’s GDP expanded.
The ‘Greenback’ has held its decline against the Japanese Yen and is close to a one-month low against the Euro. Against Sterling, ‘Cable’ is weaker.
The reason for the softening was the release of worse-than-expected US housing data which further reduced speculation that the Federal Reserve will taper its monetary easing programme anytime soon.
The Euro is little changed against the Pound ahead of the release of the latest Eurozone Consumer Confidence data. The data is expected to show a slight improvement with a rise from last month’s figure of -18.8 to -18.3. If the data comes in weaker-than-forecast then we can expect to see the Euro weaken.
The ‘Aussie’ extended its gains for a third day as rising commodity prices and a drop in volatility supported demand for higher-yielding assets. The Australian currency strengthened against the majority of its most traded peers as gold prices climbed to a one-month high and the value of iron ore hit its highest level since April.
New Zealand Dollar
The ‘Kiwi’ also made a third day of gains and is trading close to its strongest level in a month due to the measure of volatility for the currency touching its lowest level since May. The currency was also supported by a rise in commodity prices.
The ‘Loonie’ hit its highest level in a month as commodity prices increased in value. The currency is expected to strengthen further throughout the session as economists await the release of retail sales data on Wednesday.
South African Rand
The Rand steadied against the US Dollar and is set to remain firm as the ‘Greenback’ comes under pressure from weaker economic data releases which suggest that the US Federal Reserve may delay its withdrawal of stimulus measures.