Dollar at Highs as Pound Forms a Base

By Pete Southern in Currency Articles | November 4, 2014 9:48 |

The Pound is holding ground against the Euro and other major peers as it continues to receive support from the release of a stronger than expected manufacturing Purchasing Managers Index (PMI), which eased concerns over the strength of the UK economy. Sterling is likely to advance further against the Euro as economists expect the latest UK construction PMI data to come in strongly.

US Dollar

The US Dollar is hovering close to a five-year high against a basket of currencies as speculation rises that this week’s jobs and manufacturing data will back the case for the Federal Reserve to raise interest rates early next year. The ‘Greenback’ advanced to its best level in nearly two years against the Euro.

The Euro

The Euro remained weak against the Pound and other rivals as economic data continues to paint a grim picture of the Eurozone economy. Manufacturing PMI data for the 18-member currency bloc came in below economist expectations. The currency could weaken further if the session’s PPI data disappoints.

Australian Dollar

The ‘Aussie’ recovered from its lowest level in a month against the US Dollar after domestic data showed that retail sales in the country increased sharply in September. The Reserve Bank of Australia also left interest rates unchanged at 2.5%.

New Zealand Dollar

The New Zealand Dollar edged higher but remains close to a 15-month low as demand for the US Dollar weighed upon the currency. The ‘Kiwi’ is likely to experience movement late in the evening with the publication of the latest New Zealand unemployment data.

Canadian Dollar

The ‘Loonie’ ended Monday’s session at its lowest level since 2009 against the US Dollar as crude oil, the nation’s largest export, declined to its weakest level in two years. Bank of Canada Governor Stephen Poloz also said that low interest rates would still be needed to drive growth.

South African Rand

The Rand firmed after Monday’s broad selloff. The Rand was bouncing back from two-week lows hit in the previous session as weak Chinese data, a surprise decision by the Bank of Japan to ease policy further and the expected economic impact of power outages in South Africa hurt the currency.

Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.

Pete Southern About Pete Southern
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.

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