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Global Forex Report - 15 March 2016

USD/GBP opened at 0.6960 on Tuesday and has traded between 0.6924 – 0.7073 over the past week.
USD trading remained stable over the last week with little movement over the past 24 hours in anticipation of several central bank meetings to take place on Wednesday. The expectation is that the Federal Reserve will keep rates on hold however they may leave the option of raising rates open for later in the year. 
Similarly, USD/EUR opened at 0.8978 and traded between 0.8920 and 0.9231 over the past week.

The Euro has continued with its downward momentum in recent days despite a slight correction post the European Central Bank (ECB) meeting last week. Trading took place between the 0.7746 and 0.7798 mark with a possibility of heading towards the 0.7700 level. The downward momentum is partly attributable to the possible Brexit.
Some positive news came out of a Eurostat report showing better than expected Industrial Production increase of 2.1% in February 2016.

GBP/USD was trending towards the support level of 1.42 earlier in the week as the USD gained an upper hand over continued fears of a British Exit (Brexit) from the
Euro zone. The latest poll news showed that around 50% of Brits are in favour of the proposed exit.
GBP/USD traded around 1.4271 (mid-morning) and GBP/EUR around 1.2854.

Exchange rate forecasts are showing a weakening of the AUD against major currencies on the back of the ECB policy meeting last week. The forecast is largely driven by worse than expected data out of China which could lead to a drop in the prices of most commodities and in turn a weakening of the currency.
AUD/GBP opened at 0.5252 on Tuesday and is trading around the 0.5250 through mid-morning and may continue to drift downwards on the back of risk adverse investor sentiment.

The Canadian Dollar upside momentum has continued to lose ground as oil prices and other commodities continue to trend weaker. The Canadian Dollar is largely correlated with the price of commodities and has impacted the economy due to a global decrease in demand for these products.
USD/CAD is currently trading around the 1.3330 mark at the time of writing and is expected to maintain these levels with very little news expected this week other than Canadian Manufacturing Sales out later this week.

The rand has weakened earlier this week and remains volatile on Tuesday morning post the finance ministers media briefing yesterday. The currency still remains under significant pressure with the looming possibility of a credit downgrade in the near term. The finance ministry feels that significant action needs to be taken to avoid a downgrade.
The Rand opened at 22.2182 and has remained 22.1329 and 22.4246.
There is slight event risk today with data coming out for Eurozone employment stats and US retail sales.

The Naira has shown some stability earlier in the week with the official rate opening around 199 against the sterling on Tuesday. There is currently no news regarding central bank intervention in the rate despite global pressure.
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