Comparemoneytransfer.co.uk currency update
The Pound is little changed against the US Dollar and Euro ahead of the release of data that economists predict will show that UK manufacturing improved in July. Sterling snapped its six days of gains against Cable ahead of the release.
The currency is set to make bigger movements tomorrow as the newest GDP data is released. Economists are expecting the data to show that the UK economy expanded by 0.6% in the second quarter.
The ‘Greenback’ is trading close to a one-month low against the Euro as weaker data releases for the USA bolstered the argument for the Federal Reserve to delay a reduction of its bond buying programme. A strong housing sector was one of the targets set by the Federal Reserve.
Yesterday’s house price data came in lower-than-expected, adding to Monday’s disappointing existing homes data.
The Euro strengthened against the majority of its most traded peers after the single currency found support ahead of the release of data which is predicted to show that services and factory output across the Eurozone contracted at its slowest pace in more than a year.
The ‘Aussie’ weakened against its peers for the first time in four days after data showed a deepening contraction in China’s manufacturing industry. China is Australia’s biggest trading partner and any slowdown in the Asian nation negatively impacts the ‘Aussie’.
New Zealand Dollar
The ‘Kiwi’ followed its Australian relation downward due to the Chinese data causing investors to seek a safe haven elsewhere. Prior to the Chinese data release the ‘Kiwi’ was trading at a one-month high after a report showed that the nation’s trade surplus widened in June. The trade surplus was NZ$414 million in June, up from a revised NZ$39 million a month earlier.
The ‘Loonie’ rallied to a one-month high against the Dollar yesterday after a report showed that retail sales in May increased at the fastest pace in three years. The positive data increased speculation that the Canadian economy is improving.
South African Rand
The Rand is trading close to a seven-week high against the US Dollar and could strengthen even further if consumer inflation data comes in better-than-expected later in the session. Expectations that the US Federal Reserve and other global Central Banks will maintain their accommodative monetary policy for some time are helping emerging market currencies such as the Rand.