Tumbling gold prices push Greenback higher

Tumbling gold prices push Greenback higher

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 28th of June. 

Here are MyCurrencyTransfer.com’s top 5 currency highlights:

  • GBP/USD amongst lowest performers this week
  • EUR ends week of mixed bag performance on a stable note
  • Tumbling gold prices push Greenback higher
  • USD/Yen back above 99.0
  • AUD/USD continues to move in sync with 10 yr US Treasury Bonds

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1671
GBP/USD – 1.5236
GBP/CHF – 1.4415
GBP/CAD – 1.5967
GBP/AUD – 1.6480
GBP/ZAR – 15.1859
GBP/JPY – 150.7511
GBP/HKD – 11.8184
GBP/NZD – 1.9537
GBP/SEK – 10.2405

Mid-market rates as of 2013-06-28 08:45 UTC

Key releases in the next 24 hours that may affect currency date:

Australia: No Data
Europe: CHF KOF Swiss Leading Indicator (JUN), EUR German Consumer Price Index – EU Harmonised (YoY) (JUN P), EUR German Consumer Price Index (YoY) (JUN P), EUR German Consumer Price Index – EU Harmonised (MoM) (JUN P), EUR German Consumer Price Index (MoM) (JUN P), EUR German Retail Sales (YoY) (MAY)
United Kingdom:  GBP Nationwide House Prices n.s.a. (YoY) (JUN)
New Zealand: No Data
United States of America: USD Chicago Purchasing Manager (JUN), USD U. of Michigan Confidence (JUN F)
China: CNY Leading Index (MAY)
Canada: CAD Gross Domestic Product (YoY) (APR), CAD Gross Domestic Product (MoM) (APR)
Japan: JPY Housing Starts (YoY) (MAY), JPY Annualized Housing Starts (MAY)

GBP/USD amongst lowest performers this week

GBP was a bottom performer as compared to its peers over this past week and dipped by over 1.4 per cent during this time against the USD, with the GBP/USD closing down at $1.5208 from 1.5417 to start the week. Although the Sterling didn’t decline against the Japanese Yen overall Sterling weakness was quite prevalent as the GBP/AUD, one of the top performers throughout the 2Q’13, fell by 0.5% to close at AUD 1.6641. A surprise dip in the overall first quarter 2013 UK GDP reading also served to alter perception around the Sterling, and this is likely to continue to be a negative influence to the GBP’s movement in the coming weeks.

EUR ends week of mixed bag performance on a stable note

EUR performance was a series of highs and lows this week with performance that ranged between a 0.9 per cent drop against the USD as well as a 0.5 per cent gain versus the sterling. This indicates that the shared currency is not as unstable as one would expect it to be following developments like a Cypriot downgrade, Greece struggling to meet its bailout requirements and an EU summit that confirmed future banking crisis would add further burden to investors’ shoulders.

Tumbling gold prices push Greenback higher

The Dow Jones FXCM Dollar Index closed the quarter short of two-year highs as a sharp dip in gold prices pushed the Greenback higher against commodity-linked currencies. All eyes are now tuned to next week ahead of the European Central Bank meet as well as results from the US Nonfarm Payrolls labor report both of which will certainly bring volatility to FX markets.

USD/Yen back above 99.0

Japanese Yen continued advance on Friday with the USD/JPY climbing back above the 99.00 handle. The Yen currency may continue to face volatility in July should the Bank of Japan (BoJ) show a greater willingness to further embark on its easing cycle.

AUD/USD continues to move in sync with 10 yr US Treasury Bonds

The impact of quantitative easing programmes unfolded by the Fed and its aftermath across the financial markets has continued to impact the AUD’s movement over the past several weeks. An index that tracks the AUD’s average value against its peers recently indicated the manner in which the AUD moved in sync with the dip in the benchmark 10-year US Treasury bond ever since the news of a near-term scaling back in Fed asset purchases began to emerge in late April.

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