Daily comparemoneytransfer.co.uk currency report
The Pound is little changed against the US Dollar and Euro as the UK prepares to sell off inflation-protected government debt. Sterling continues to trade close to its highest-level in two-months against the ‘Greenback’. The currency found support yesterday after the Confederation of British Industry increased its growth forecasts for the UK economy.
The ‘Greenback’ softened against the Japanese Yen after heavy losses in the Asian equities market increased demand for the safe-haven Yen. Against the Euro and Sterling the Dollar is little changed as economists wait for Wednesday’s Federal Reserve policy meeting minutes for July. Investors are hoping that the report will offer some indications as to when the Central Bank may start to taper its monetary easing programme.
The Euro edged higher against the Dollar, coming close to a weekly-high as investors await the release of the latest manufacturing and services data that may add to signs that the Eurozone economy is recovering.
The ‘Aussie’ has fallen for a second day due to the Reserve Bank of Australia saying that the currency’s direction will be important to determining its policy. The latest RBA policy meeting minutes release showed that another interest rate cut is not imminent.
New Zealand Dollar
The ‘Kiwi’ tumbled against its peers after Reserve Bank of New Zealand Governor Graeme Wheeler said that the currency is overvalued. Wheeler also said in yesterday’s speech that restrictions will be placed on bank lending to home buyers with small deposits. The move comes as the Central Bank tries to dampen house price inflation in the country.
The ‘Loonie’ is softer against its US relation as investors await the release of the latest consumer price index and retail sales data. Both reports are expected to show declines with the CPI coming in below the Central Banks inflation target for a 15th consecutive month.
South African Rand
The Rand has plummeted to its lowest level in six-weeks as investors continue to dump local assets in a global sell-off of emerging markets. Investors are choosing to sell-off riskier assets on the expectation that the US Federal Reserve will begin to scale back its monetary easing programme in September. Also weighing heavily upon the Rand are renewed concerns over possible labour strife in the key mining and auto industries.