Compare money transfer daily market report
The Pound is set to make a second weekly advance against the Euro and US Dollar after data released earlier in the week supported signs that the UK economic recovery is gaining strength. Sterling managed to reach an eight-week high against the Dollar yesterday after data showed that retails sales in the UK beat economists’ forecasts. In the past six months Sterling has jumped by 4.1% making it the best performing developed nation currency.
The ‘Greenback’ recovered some strength yesterday but is set to end the week down against the Pound and Euro. Against the Japanese Yen the US currency rose to a new one-month high as economists expect this afternoon’s consumer confidence and housing starts data to show further signs of improvement. Speculation over whether the Federal Reserve will begin tapering its monetary easing programme has increased, benefiting Cable.
The Euro is little changed against its peers as economists await the release of the latest Eurozone inflation and balance of trade data. Both reports are expected to show improvements and are likely to support the Eurozone’s tentative recovery.
The ‘Aussie’ is set for a weekly decline as investors await the release of the Australian Reserve Bank’s policy meeting minutes which are due next week. Speculation is building that the report will show that the Central Bank will hint further reductions to interest rates.
New Zealand Dollar
The ‘Kiwi’ fell by almost half a cent against the US Dollar after a magnitude 6.6 earthquake struck the centre of the country. As a result, New Zealand’s stock exchange was closed after aftershocks measuring 6.3 on the Richter scale continued to shake the country’s capital.
The ‘Loonie’ made gains against the US Dollar due to increasing speculation that the US Federal will begin easing its monetary stimulus measures in September. The currency also found support from a fifth day of increases in the value of Crude oil as the ongoing Egypt crisis pushed up global oil prices.
South African Rand
The Rand found some support against the US Dollar after the value of gold rallied to a two-week high. Gold is one of South Africa’s biggest exports and thanks to increasing demand from China the precious metal looks set to continue making gains in value.