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The Pound is little changed today due to a lack of key economic releases for the UK, instead the currency is likely to be affected by the plethora of data releases from the Eurozone and this afternoons US consumer confidence data. Pound traders are waiting for Thursday when the Bank of England announces its latest interest rate decision.
The ‘Greenback’ has strengthened against the majority of its most-traded peers due to expectations that the Federal Reserve will reiterate its plans to reduce its monetary stimulus programme if the US economy continues to show signs of improvement.
Today sees the release of the latest consumer confidence data which is expected to show a slight decline. The Federal Reserve begins its two day policy meeting today as well.
The Euro is little changed ahead of this week’s policy meetings due to be held by the Federal Reserve, Bank of England and European Central Bank. The Euro could strengthen throughout the day if today’s data releases show further signs of improvement in the Eurozone economy. Spanish GDP has declined at a slower-rate-than-expected and consumer confidence is expected to show improvement in confidence for the Eurozone.
The ‘Aussie’ has tumbled yet again after Central Bank Governor Glenn Stevens added to the downward pressure on the currency after he made comments that the ‘Aussie’ could decline further and that there was room for more interest rate cuts.
New Zealand Dollar
The ‘Kiwi’ followed the Australian Dollar downward against its peers following the comments made by Reserve Bank of Australia Governor Glenn Stevens. The currency did find some support however after dairy company Fonterra announced that it is likely to increase its payout to farmers, hinting that the New Zealand economy is continuing to strengthen.
The ‘Loonie’ hit a one-month high against the US Dollar after the nation’s largest export, crude oil remained trading above $100 per barrel for an 18th consecutive day. The country’s latest GDP data is due for release today and is expected to show that the Canadian economy expanded by 0.3% in the second quarter of the year.
South African Rand
The Rand weakened against the US Dollar after the South African Reserve Bank said that growth in borrowing by the nation’s households and companies slowed to 8.9% in June, down from the 9.1% recorded in the previous month. The Rand is likely to remain under pressure this week ahead of the release of local employment and trade data.