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Monday Morning Interbank Exchange Rates and FX News

Major Interbank Exchange Rates and Currency Market News

GBPUSD 1.5888
EURUSD 1.2472
AUDUSD 0.8670
NZDUSD 0.7798
USDCAD 1.1332
USDZAR 11.2212

GBPEUR 1.2739
GBPAUD 1.8326
GBPNZD 2.0374
GBPAED 5.8357
GBPCAD 1.8004
GBPZAR 17.8283

Data to be released this week:

Monday (10 November 2014)

  • Australia housing finance, China CPI, PPI, Italy industrial output, EU sentix index and Canada housing. 

Tuesday (11 November 2014)

  • Japan trade balance, current account, tertiary industry index, Australia home price index, NAB business confidence, France market holiday, Canada market holiday and U.S. market holiday.

Wednesday (12 November 2014)

  • Australia Wage price index, UK average earnings, claimant count, ILO unemployment, BoE inflation report, EU industrial production, U.S. redbook retail sales, wholesale inventories and wholesale sales.

Thursday (13 November 2014)

  • Japan CGPI, machinery orders, industrial output, capacity utilization, China industrial output, retail sales, Germany CPI, HICP, Swiss PPI, Italy CPI, Canada housing price index, U.S. jobless claims and Federal budget.

Friday (14 November 2014)

  • France GDP, Germany GDP, Italy GDP, UK construction output, EU GDP, CPI, U.S. retail sales, export prices, import prices, business inventories, U. of Michigan sentiment and Canada manufacturing sales.

Dollar falls broadly on downbeat U.S. jobs data

The greenback fell across the board on Friday after the release of weaker-than-expected U.S. non-farm payrolls increased speculation that the Federal Reserve won't tighten its policy anytime soon.

U.S. non-farm payrolls n private payrolls came in weaker-than-expected at 214K n 209K vs forecasts of 231K n 222K respectively whilst unemployment rate dropped to its lowest lvl in 6 years at 5.8%.

Versus the Japanese yen, the greenback traded with a firm bias in Asia and gained to 115.46 and rose marginally higher to a fresh 7-year peak at 115.62 at New York open. Dollar then tumbled to 114.61 on the release of poor U.S. jobs data before staging a brief but sharp recovery to 115.42 as the data also showed unemployment rate dropping to a 6-year low. Later, price met renewed selling and tanked to an intra-day low at 114.25 in New York afternoon before stabilizing.

Despite trading with a firm bias in Asia and gaining to 1.2408 in European morning, the single currency retreated to 1.2368 ahead of U.S. jobs report release. Euro spiked higher to 1.2442 immediately after the release before tumbling swiftly to a fresh 2-year low at 1.2357. Later, price pared its losses and rose to an intra-day high at 1.2470 in New York afternoon on dollar's weakness.

The British pound remained under pressure in Asia and weakened to 1.5802 in European morning. Later, cable briefly spiked up to 1.5861 after the release of U.S. jobs data before falling swiftly to a fresh 1-year trough at 1.5790. However, price pared its losses and gained to an intra-day high at 1.5887 near New York close.

In other news, Fed Chief Janet Yellen, speaking at Bank of France symposium, said 'lack of fiscal support has weakened U.S. and global economic recovery; governments need to significantly improve fiscal balances in good times to prepare for stimulus in bad times; monetary policy globally will need to normalize as economic activity and inflation return to normal; timing and speed will vary across countries; normalization could lead to heightened financial volatility.'

Author: AceTrader Team


Euro Eyes ECB Bond-Buying Results

The Euro is looking to the results of last week’s ECB bond purchases for direction. The US Dollar came under pressure to start the trading week.

The US Dollar underperformed to start the week, tracking Treasury bond yields as Asian markets took their turn to react to last week’s disappointing Employment figures. The report showed a 214,000 payrolls increase in October, disappointing expectations calling for a 235,000 gain and hinting the Federal Reserve may move slower to issue its first post-QE3 interest rate hike.

Looking ahead, the European Central Bank is in spotlight as it reports the size of last week’s covered bond purchases. The first week of the program saw a mere €1.7 billion in uptake, which the markets seemed to judge as far too small to meaningfully counter deflationary pressure in the currency. With that in mind, a similar outcome this time around would suggest the ECB may be aiming to make a habit of this tepid pace, which might boost the Euro. Alternatively, a noticeably larger effort stands to weigh on the single currency.

Also of note, Bank of England Governor Mark Carney is due to speak at a press briefing in Basel ahead of the Brisbane G20 summit. Commentary touching on global growth trends at large may carry implications for risk appetite and sentiment-sensitive currencies including the Japanese Yen (with dour rhetoric set to boost the safe-haven unit, and vice versa). Signs of increased worry about spillover effects from a hobbled Eurozone economy may likewise punish the British Pound amid ebbing BOE rate hike bets.

Author: Ilya Spivak


AUD/NZD Climbs after RBA Statement

The Aus Dollar (AUD) exchange rate trended higher against the NZ Dollar (NZD) on Friday following the Reserve Bank of Australia (RBA) statement.

latest aus dollar and nz dollar exchange rate forecastsThe AUD was offered support after the central bank stated that it wouldn’t be altering monetary policy in the near future, an assurance which gave some stability to the Australian commodity currency.

RBA Warns of Economic Slowdown and High Australian Dollar

The RBA statement issued a warning that the Australian economy could remain subdued while ‘Aussie’ strength increased as a result of Japan’s aggressive monetary policy stimulus measures.

The RBA Statement read: ‘Gross domestic product [GDP] growth is still expected to be below trend until mid-2015.’ Furthermore, interest rates have remained at the current 2.5% historical low for some time, and look likely to continue at that level.

The statement continued: ‘The very accommodative monetary policy settings will continue to provide support to demand and help growth to strengthen, in time.’

However, the RBA has recently come under fire for the low rates, which have allowed property investors to take advantage of the housing market. The prospect of a housing bubble has been a prominent fear for investors and economists alike who believe that the housing market could need cooling measures. The RBA commented on the housing market, stating: ‘Conditions in the housing market are consistent with strong growth in dwelling investment.’

In other news, the Australian construction sector experienced a slowdown in October, with the Performance of Construction Index dipping to 53.4 from 59.1. The figure still remains above the 50 benchmark which indicates that the sector is expanding.

New Zealand Data Scarce Leaving Exchange Rate Movements to Global Developments

The New Zealand Dollar experienced a quiet day of trading on Friday with no domestic data scheduled for publication.

Next week may hold some more influential releases for New Zealand Dollar trading, with Monday seeing New Zealand House Sales, House Price Index, Card Spending and Heavy Truckometer figures published.

The New Zealand Business Performance of Manufacturing Index and Food Price figures will be out on Wednesday, while Thursday will reveal the level of Consumer Confidence in the Trans Tasman nation.

The Australian Dollar has an influential week ahead:

Monday will see Chinese data published which could offer the Australian currency some support if favourable as China is Australia’s largest trading partner.

Furthermore, Australian Home Loans, Investment Lending and Consumer Confidence figures are out on Monday which could impact the ‘Aussie’ considerably.

Business Confidence, Westpac Consumer Confidence and House Price Index stats are scheduled for release on Tuesday while Credit Card Purchases, Wage Cost Indexes and Credit Card Balances are published on Wednesday.

Toward the end of the week Australian Consumer Inflation Expectations are released and could prove highly significant for Australian Dollar movement.

Author: David Woodsmith


Rupee recovers by 15 paise vs dollar in morning trade

The rupee hovered in a range of 61.44 - 61.49 per dollar

The Indian rupee recovered by 15 paise to 61.47 against the American currency in morning trade on fresh selling of dollars by banks and exporters in the wake of strong foreign capital inflows.

The rupee resumed higher at 61.45 per dollar as against last weekend's level of 61.62 at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 61.44 - 61.49 per dollar before quoting at 61.47 at 1000hrs.

Banks and exporters preferred to sell dollars in view of strong foreign capital inflows into equity market, a forex dealer said.

The Indian benchmark sensex was quoted down by 9.18 pts or 0.03 per cent to 27,859.45 at 1000hrs after hitting an all- time high level of 28,027.96.

In the New York market, the ICE US Dollar Index finished higher for the third week in a row last Friday, boosted by gains against the euro, pound and yen that pushed greenback rise to multi-year highs.

Author: Press Trust of India


Rand firmer as U.S. jobs data disappoints

As the local unit had fallen to a five-week low.

South Africa's rand firmed on Monday against the dollar after U.S. jobs data at the end of last week came in weaker than expected, giving the currency a reprieve at the beginning of a week that sees the release of a slew of domestic economic data.

c after Thursday's credit rating downgrade by Moody's that cited poor economic prospects for Africa's most advanced economy.

By 0627 the unit edged 0.29% firmer to 11.2550 per dollar after closing at 11.2575 in New York.

U.S. employers added 214 000 jobs to their payrolls last month, missing forecasts for 231 000, leading to slight cooling of investor confidence in the U.S. economy that had seen the dollar reach a four-year high against a basket of major currencies.

"The slight disappointment was enough to significantly dampen global markets' exuberance," John Cairns of Rand Merchant Bank said in market note.

Cairns warned that the previous week's volatility - that saw the rand fall as far as 11.3600 - may continue this week.

On Tuesday Statistics South Africa releases monthly manufacturing output data at 0900 GMT followed by mining output data on Thursday.

Bonds tracked the rand firmer, with the yield on the benchmark government issue due in 2026 shedding 5.5 basis points to 8%.

Author: Mfuneko Toyana



Moody's downgrades SA as Rand firms after ECB deci...
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