Foreign Exchange Daily Market Commentary – UKForex – 28/09/2010

Foreign Exchange Daily Market Commentary – UKForex – 28/09/2010

United States Dollar: On what was a quiet day’s trade yesterday, Cable has fallen from its recent highs. For the duration of yesterdays UK session Sterling was trading around 1.5860 versus the Greenback, but opens today’s at 1.5793. As mentioned before, it was a quiet day yesterday with no planned releases to take into consideration. The majority of Cables losses were seen as we entered the Asian session overnight on the back of an article in the Wall Street Journal. It suggested that the next round of QE by the Fed may be quite different to the last. This news saw the majors reverse its recent gains against the US Dollar. Cable fell as low as 1.5780. Releases today see UK Final GDP q/q, UK current account and US CB consumer confidence, which all should a play on where the currency pair goes today.

– We expect a range today in the GBP/USD rate of 1.5740 to 1.5850

Euro: The single currency has declined against the US Dollar overnight. This again is for the same reasons that all the majors are sitting lower against the US Dollar this morning, which is the WSJ article. The Euro had been in modest retreat versus the Greenback anyway. This was down to Moody”s downgraded Anglo Irish Bank 3 notches from A3 to BAA3. This took the currency pair from 1.3480 to 1.3440 and the currency pair sits even lower this morning. This is on the back of news surrounding AIB debt situation and on news that Spain could be losing their last triple A rating. The Pound is sitting higher against the Euro for the same reasons this morning. EUR/USD opens at 1.3410 and GBP/EUR is at 1.1772 currently.

– We expect a range today in the GBP/EUR rate of 1.1740 to 1.1850

Aussie and Kiwi Dollars: The Aussie and Kiwi are both sitting lower against the Greenback this morning. These losses are slight in comparison to the impressive gains seen of recent. These losses after back to back gains may give traders some food for thought on recent views that the AUD/USD will be at parity before too long. Again, as mentioned above, the fall is down to the WSJ article about how the Fed will handle the next round of QE. AUD/USD opens at 0.9580 and NZD/USD is at 0.7320. Sterling sees little in the way of gains or losses against the antipodean currencies and opens at 1.6510 and 2.1605 respectively.

– We expect a range today in the GBP/AUD rate of 1.6410 to 1.6630

– We expect a range today in the GBP/NZD rate of 2.1480 to 2.1690


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