United States Dollar: A fairly quiet UK session yesterday was met with a much busier Asian session overnight. Cable has fallen around 90 pips during the Asian session as general risk aversion seeing the USD strengthen. Risk aversion has hit the markets as the ongoing troubles in Libya see investors run for cover. We have seen Gold and Silver prices rocket as well as oil prices rise on the back of this. Overnight also saw another Earthquake hit New Zealand which hasn”t supported investors risk appetite. A turn back to the safe haven currency sees GBP/USD open this morning at 1.6135 down from a high of 1.6240 early yesterday. All eyes will be on the US session today as US markets opening for the first time this week after the bank holiday yesterday.
– Expected range today in the GBP/USD: rate of 1.6060 to 1.6240
– Expected range today in the GBP/EUR: rate of 1.1810 to 1.1980
– Expected range today in the GBP/AUD: rate of 1.6010 to 1.6250
– Expected range today in the GBP/NZD: rate of 2.1500 to 2.1780
Euro: The single currency is no different to other in falling against the Greenback. Again this is down to the change in risk appetite as investors moving back to the safe haven currency due to the Middle East and South Pacific events. EUR/USD, before the Asian session overnight, had pushed through 1.3700 after Euro-zone data came in better than expected. French flash manufacturing and services PMI came in above expectation as did German flash manufacturing PMI data. The same releases were seen for the Euro-zone and the results were also much better than expected as was German Ifo business climate data. EUR/USD opens at 1.3557. Sterling is sitting higher against the 17-nation currency. This again is down to all that has been mentioned already. GBP/EUR opens this morning at 1.1909.
Aussie and Kiwi Dollars: The New Zealand earthquake has seen both the Pound and the US dollar jump against its nation’s currency. The Kiwi has currently lost around 290 pips versus the Greenback and around 360 pips against Sterling. As I type, these gains are also continuing. The Middle East situation, as mentioned above, had already seen both the Aussie and Kiwi suffer, but the earthquake has turned modest gains for the GBP and USD turn into larger ones. AUD/USD sits lower at 1.0004 this morning and NZD/USD is currently 0.7470. Sterling opens at 1.6145 and 2.1604 respectively.