Money transfer comparison update
The Pound strengthened for the first time in five-days against the Euro yesterday and is holding gains after data showed that construction in the UK expanded in June, adding to signs that the nation’s economy is gaining strength.
New Bank of England Governor Mark Carney is set to hold his first policy meeting on Thursday. Economists are predicting that he will maintain the Bank’s current bond-buying target at £375 billion.
The ‘Greenback’ strengthened to its highest-level in a month ahead of Friday’s latest US jobs report. Against the Euro the US Dollar rose to its highest level in four-weeks as economists await the release of data that is expected to show that the nation’s service sector expanded at its fastest pace since March.
The Euro is weaker against the Pound and US Dollar after political uncertainty in Portugal increased demand for safe havens. The Portuguese government has come under increasing pressure after its finance minister resigned on Monday and today saw its foreign minister follow suit. Anger has been growing over the harsh austerity measures imposed on the country.
Fears are now mounting that unrest in Portugal and other nations will reignite the Euro crisis. The Euro has also been weighed down by a weaker-than-expected Eurozone Purchasing Managers Index. Retail sales data is also expected to show a further decline.
The ‘Aussie’ fell to its lowest-level since September 2010 after Reserve Bank of Australia Governor Glenn Stevens said that the currency has been too high in recent months, and that he expects the currency to weaken further over the coming weeks. The currency briefly rose after data showed that the nation’s trade surplus in May was ten-times more than economist expectations. The currency was hit by weaker-than-expected retail sales data.
New Zealand Dollar
The ‘Kiwi’ reached a four-and-a-half year high against its Australian relation due to the release of weaker-than-expected retail sales data in the bigger Oceanic nation. The New Zealand currency was also boosted by improving commodity prices, particularly for dairy products.
The ‘Loonie’ fell to a 20-month low as U.S. manufacturing picked up in May, adding to evidence a strengthening U.S. economy is outpacing its neighbour.
South African Rand
The Rand has weakened beyond the key R10 to the Dollar level due to a stronger US Dollar weakening demand for other global currencies. As the US economy continues to show signs of improvement the Rand is likely to weaken further.