Compare Money Transfer currency report
The Pound is little changed against the Euro and US Dollar ahead of the Bank of England’s quarterly inflation report. BOE Governor Mark Carney is due to hold a press conference later in the day and is expected to signal the future direction of the UK’s interest rates. Economists are expecting him to align Bank of England policy closer to that of the US Federal Reserve by linking guidance on interest rates to economic developments.
The ‘Greenback’ is trading softer against the Pound and Euro on a day that sees few important data releases. The currency is down slightly due to increased risk sentiment following yesterday’s data which showed that the economies of the Eurozone and UK and improving.
The Euro is trading close to a seven-week high against the US Dollar after data showed that German factory orders rebounded in June, adding to signs that the Eurozone is on course to start making a recovery. Factory orders in the region’s largest economy increased by 3.8%, up from the 0.5% increase recorded in May.
The ‘Aussie’ has weakened against the majority of its most traded peers as the market awaits tomorrow’s unemployment data release. Economists are expecting the jobless rate to rise to its highest-level in four-years.
New Zealand Dollar
The ‘Kiwi’ managed to maintain yesterday’s gains due to the furore over tainted dairy products appearing to have died down. The company responsible for the outcry pledged that it will launch an investigation into the issue; as a result traders recovered confidence in New Zealand’s dairy exports.
The ‘Loonie’ weakened against the majority of its most-traded peers as commodities including oil, the nation’s biggest export declined for a third consecutive day. Against the US Dollar the currency traded at a two-week low due to speculation that an upcoming jobs report will show that the number of new jobs created will come in below economist forecasts.
South African Rand
The Rand weakened against the majority of its most traded peers after the release of data showing an expansion in the USA’s service industry sector. The improved figures increased speculation that the Federal Reserve is poised to taper its monetary stimulus measures.