Forex currency update at Compare Money Transfer
The Pound surged against the Euro and US Dollar this morning after a report showed that UK pay growth accelerated at its fastest pace in almost seven years at the end of the first quarter. The rise came as businesses reported increased demand from overseas. Sterling was also bolstered by better-than expected Industrial and Manufacturing Production data comes which came in strongly.
The US Dollar fell against the majority of its peers as investors continue to speculate that last weeks disappointing jobs report will lead to the Federal Reserve making dovish comments at its upcoming policy meeting.
The Euro advanced against several peers after European Central Bank policy makers said that the threat of deflation in the Eurozone is contained, subduing speculation among investors that the Central Bank will introduce quantitative easing measures in a bid to increase growth in the Eurozone. News for the Euro is light today so the currency will be vulnerable to events elsewhere.
The ‘Aussie’ leapt to a new four-and-a-half month high against the US Dollar and pushed higher against several other major peers. The currency strengthened despite the release of a report which showed that business confidence softened in March. Investors are growing increasingly jittery as the Federal Reserve policy meeting approaches.
New Zealand Dollar
The New Zealand Dollar was higher against the US Dollar and other peers as demand for the ‘Greenback’ remained under pressure ahead of Wednesday’s Federal Reserve policy meeting. The ‘Kiwi’ gained despite a report showing that business confidence in the smaller South Pacific nation softened.
The Canadian Dollar edged higher yesterday following the release of a Bank of Canada survey which showed positive sentiments for the domestic economy. The report showed that most Canadian firms had seen growth in sales over the past 12 months. A fall in oil prices kept further gains in check.
South African Rand
The Rand advanced to its strongest level since the start of the year as demand for riskier assets improved. Investors should keep an eye on the release of the South African Chamber of Commerce and Industry (Saccci) March business confidence index to gauge economic sentiment. The indicator rose in February despite subdued economic activity.