Compare Money Transfer daily market update
Although the Pound retained recent losses against the Euro overnight, the British currency was brushing an eight-month high against its US counterpart as the European session opened. The tone adopted in the Bank of England minutes, due for publication at 09:30 GMT, will be a key catalyst for Sterling fluctuations today.
Ahead of the conclusion of the Federal Open Market Committee’s hotly debated policy meeting the US Dollar was languishing close to an eight-month low against the Pound and three-week low against the Euro. Before the Fed delivers its statement, ‘Greenback’ movement could be inspired by US building permits and housing starts reports.
Yesterday’s stronger than anticipated German economic sentiment survey boosted the Euro during the local session, allowing the common currency to modestly extend its advance on the Pound. While today’s construction output figures for the Eurozone will be of interest, US news is likely to be responsible for the majority of market movement.
While the ‘Aussie’ softened slightly against the US Dollar ahead of the conclusion of the Fed’s two day policy meeting, the commodity-driven asset was supported against several of its other main peers by the news that both the Westpac and Conference Board leading indexes advanced in July.
New Zealand Dollar
After New Zealand’s Finance Minister Bill English asserted that a weaker ‘Kiwi’ would be beneficial for the nation’s economy the South Pacific currency softened accordingly. The New Zealand Dollar pared yesterday’s 1 per cent gain against the ‘Greenback’ and lost ground against its Australian cousin despite a report showing that New Zealand’s current account deficit was narrower than expected.
A surge in Canadian factory orders boosted the ‘Loonie’ yesterday, helping the currency achieve an almost one-month high against its US counterpart. Factory orders hitting their strongest level for five months, coupled with broad-based US Dollar weakness, supported the Canadian Dollar overnight. An absence of pertinent domestic news may keep ‘Loonie’ movement limited ahead of the Fed announcement.