Compare money transfer market update
The Pound weakened against the US Dollar ahead of the publication of the latest Bank of England policy meeting. The minutes are expected to show that interest rates will remain at a record low 0.5% for the foreseeable future.
Against the Euro, Sterling fell close to a four-month low on speculation that the minutes will show that Governor Mark Carney will tie interest rates to economic developments. Today, also sees the release of the latest jobless claims data which is expected to show a fall of 8,000 in June.
The ‘Greenback’ has made gains against the Pound and Euro as investors prepare for Federal Reserve Chairman Ben Bernanke to testify to Congress today. The currency could find further support if economic data shows improvement. New housing starts are expected to have climbed by 5% in June.
The Euro strengthened to a four-month high against the Pound, and is holding steady against the US Dollar as investors await the outcome of Ben Bernanke’s two-day testimony to Congress. Today is a quiet day for the Euro with only the latest Eurozone construction output data due for release.
The ‘Aussie’ snapped its biggest gains since November 2011 as speculation mounts that the Australian Reserve Bank could cut interest rates to a new record low next month. Also weighing on the currency is concern that the Chinese economy is slowing. Declines have been limited however amid speculation that Federal Reserve Chairman Ben Bernanke will signal that the US economy still needs monetary easing.
New Zealand Dollar
The ‘Kiwi’ weakened as investors await US Federal Reserve chairman Ben Bernanke's Congressional testimony. The New Zealand currency was also weakened as Chinese stocks declined for the first time in three days, dampening demand or higher-yielding assets.
The ‘Loonie’ weakened against its US relation after futures on crude oil, Canada’s largest export, dropped 0.5% to $105.79 per barrel. Speculation over Ben Bernanke’s testimony to congress is also weighing upon the currency as investors speculate over whether he will announce a reduction to the Fed’s bond buying programme.
South African Rand
The Rand has weakened slightly following yesterday’s rise to its highest-level in six weeks. The Rand strengthened amid speculation that the South African Reserve Bank will leave borrowing costs at a three-decade low later in the week as it attempts to bolster growth.