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Pound Looks Higher In Anticipation Of GDP Data

 
26 October 2014

The Pound was trading higher against the Euro on Monday and regained ground against other peers as concerns over the global economy eased and investors looked ahead to the release of the latest Bank of England policy meeting minutes and UK GDP growth data. Also due this week are the latest UK Retail Sales figures. The GDP data is forecast to show that the UK economy has expanded for a fifth consecutive month.

US Dollar

The US Dollar remained supported following last Friday’s US Consumer sentiment data, which showed that sentiment soared to its highest level since July 2007. Another report also showed that housing starts increased more than expected in September. The ‘Greenback’ found additional support from an improvement in global sentiment.

Euro

The Euro weakened against several major rivals on Monday due to the publication of yet more disappointing data out of Germany. On an annual basis, German PPI dropped by 1% in September, down from the 0.8% fall recorded in August. The data adds to concerns over weak inflation across the Eurozone. Investors will be watching out for the outcome of a meeting being held by Eurozone leaders. Regional politicians have gathered in Brussels to discuss the economy as last week’s market panic raised fears of a return to the Eurocrisis.

Australian Dollar

The ‘Aussie’ firmed against the US Dollar and other major peers as global risk aversion eased following the release of positive US data last Friday. Attention will now shift to Tuesday and the publication of the Reserve Bank of Australia policy meeting minutes.

New Zealand Dollar

The New Zealand Dollar followed its ‘Aussie’ relation higher against the Pound and other peers as calm returned to the markets after last week’s panic attack. The currency also found support on investor speculation that last week’s declines were overdone.

Canadian Dollar

The ‘Loonie’ regained ground along with the other commodity and emerging-market currencies following last week’s panicked sell off. Despite the gains, the currency remains under pressure from low oil prices and weak domestic economic data releases.

South African Rand

The Rand was softer against the Pound and other major peers at the beginning of the week. The currency is forecast to remain range bound for the next few days as concerns over the Eurozone and wider global economic growth continue to weigh on riskier assets.

Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.

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