Money transfer compared currency update
The Pound climbed to its strongest level in more than two-years against the US Dollar as the UK currency continues to find support from positive data releases and confidence that the nation’s economy will be the best performer in the Western world after the US over the next few years. Some are predicting that the country’s economy will overtake France to become the world’s fifth largest economy. House prices continue to rise and unemployment continues to fall. The Bank of England has warned that the currency is too high and as such we could see measures being taken in the New Year to try and curb its rise.
The US Dollar fell against the majority of its peers due to speculation that the currency’s recent gains have been excessive, especially against the Japanese Yen. As a result the Dollar fell against the Euro and fell below the 0.60 range. Against the Yen the ‘Greenback’ retreated from a five-year high.
The Euro has strengthened against the Pound and US Dollar following the release of data in France which showed that the nation’s Producer Price Index (PPI) came in above forecast. The index came in at 0.5%, above expectations for a reading of -0.2%. The single currency also found support against the Dollar after economists said that they believe the US currency’s recent gains have been overdone.
The ‘Aussie’ is little moved as the market remains stagnant thanks to the Christmas holiday season. No economic data is due to be published so any movement will be as a result of external factors. The currency could make gains next week if data out of China comes in better-than-expected.
New Zealand Dollar
The ‘Kiwi’ hit a three-week low against the US Dollar in subdued holiday trading. The US Dollar advanced against commodity currencies like the kiwi and Aussie after a report on Thursday showed the number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly a month.
The Canadian Dollar remains subdued against the US Dollar following yesterday’s positive jobs data out of the USA. It managed to gain some ground after economists said that the US currency’s recent gains has been overdone. The ‘Loonie’ also fell against the Euro.
South African Rand
The Rand tumbled against its major peers following yesterday’s jobs report from the US. Against the Pound the Rand fell by as much as 0.94%.