The US Dollar has firmed against the Pound in quiet trading due to recent data supporting that the US economy is improving.
Due to the Veteran’s Day national holiday in the US there was no data released out of the world’s largest economy on Monday. Instead investors looked to last week’s positive non-farm payrolls report which showed that the US economy had created 204,000 jobs in October, better than the 125,000 expected by economists.
The recent bout of better-than-expected data releases suggests that the US economy was not as badly impacted by the 16-day Federal government shutdown and debt ceiling debacle as first thought. The most recent GDP data showed that the economy expanded more than forecast in the third quarter.
The positive data has increased speculation that the US Federal Reserve will choose to taper its $85 billion per month monetary easing programme sooner than initially expected with some economists predicting that a cut could occur as soon as December if the data continues to be positive.
“The argument for December tapering is certainly gaining momentum. The US Dollar could get further support from any hints of a potential reduction in stimulus from Fed Chariman Ben Bernanke in a speech this Thursday,” said a strategist at IG based in Sydney.
The Canadian Dollar meanwhile strengthened against the majority of its most traded peers as it was sent higher as a result of last week’s positive economic data releases for Canada. In a slow news day investors are looking at last week’s reports in order to find guidance.
“The Canadian Dollar looks better on the crosses, that’s consistent with growth looking a little better in North America as a whole and the by-product of that is that Canada will probably do a little better than those in the global environment,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in a phone interview with Bloomberg.
The Pound is likely to recover some ground on Tuesday due to the release of a number of important UK economic data releases the most important of which is the UK inflation rate report for October.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6242
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7471
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0472
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6019
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3384
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9549
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7134
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5961
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6775
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0472
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4016
(Correct as of 14:30 pm GMT)
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