Pound under pressure as Aussie hits high
Pound Sterling - UK markets
The UK currency is trading in consolidation mode against the US dollar today, posting its lowest level since May 21. GBP/USD has been trading inside a narrow range between 1.59 and 1.58 and the pair has reached an intra-day low trading at around 1.57.
Meanwhile The British Chamber of Commerce said business confidence was getting stronger but the economy was still “frail”. If next week's official GDP figures show no increase, it will be the first time the UK has endured six successive quarters without growth.
US Dollar - US Markets
Despite inching up slightly, the dollar remains weak, trading close to the 1-year record low level. The past week saw a rise in US bond yields which pulled the dollar back up against the Japanese yen. The US currency was up a quarter of a percent against the yen at 90.05 and was flat against the euro at 1.47.
Euro - European Markets
The euro has made a recovery from its slip yesterday after running into bids around 1.47 against the US dollar. However, traders do not seem keen to push the single currency out of its near term range of 1.470 -1.477. The trading range against the pound is among the key support at 0.91 and key resistance now lies at 0.95.
Other Currencies - Highlights
The New Zealand dollar was up almost half a percent at 0.73 against the US dollar whilst the Australian currency, which earlier hit a 14-month high of 0.90 against the dollar, crept back as dealers booked profits from the rise.
The Canadian dollar traded against the US currency at 1.031 whilst Switzerland's import price index for September climbed to 0.2%, higher than both the prior and forecasted readings of 0.1%.
Elsewhere, China and Russia have signed trade agreements worth USD 3.5 billion. The agreements came on the second day of a visit to Beijing by Russian Prime Minister Vladimir Putin.