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GBP/EUR: Currently trading at 1.3872
- Last week saw the pairing reach its strongest levels since 2007, as the combination of ECB quantitative easing details, positive UK manufacturing & PMI figures and strong US data managed to sink the Euro. A quieter week in terms of announcements is scheduled for the UK this week, so we expect the pairing to be influenced from events in Europe.
- Today’s Eurogroup meetings, in what is otherwise a quiet day, may bring some volatility to the pairing, as Greece’s reform plans are likely to be further discussed.
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GBP/USD: Currently trading at 1.5109
- After US data on Friday showed that 295,000 jobs had been added in the February month, representing the best stretch of job creation in nearly 15 years, along with a reduction in the unemployment rate to 5.5%, we saw rate fall by just over a cent briefly hitting a low of 1.50.
- We expect this trend to continue today with the release of the labor market conditions index this afternoon. However, the Eurogroup meeting today could generate significant volatility which could have a knock on effect on the pairing.
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EUR/USD: Currently trading at 1.0887
- Non-Farm Payroll figures from the US managed to impress on Friday afternoon, coupled with the announcement of a drop in the US unemployment change. This allowed the dollar to strengthen further against the Euro, enabling the pairing to drop below the 1.09 mark.
- With no major data releases from the US today, all focus today will be on the Eurogroup meetings in which the next steps regarding Greece’s economic reform plans following their loan extension are likely to be discussed. We may therefore see some volatility affect the pairing if any major steps are announced
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GBP/AUD: Currently trading at 1.9530
- Last week proved to be a strong week for the Aussie as the pairing fell just under 3 cent to close on Friday around the 1.95 mark. Last night saw AUD job advertisements rise by 0.9% after a previous increase of 1.2% representing a ninth consecutive increase.
- For the most part, today should be a quieter day for the pairing until the release of AUD business confidence figures later tonight (00:30) which could shake the pairing if the reading fall either side of the forecasted level.
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GBP/NZD: Currently trading at 2.0477
- The Kiwi was unable to hold on to gains made during Friday’s session, as momentum shifted back with the Pound.
- Today’s calendar brings little activity, with the focus being on Manufacturing Sales data from New Zealand. We expect little change, with the Pounds recent strength being the undertone before Wednesdays RBNZ rate statement.
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GBP/CAD: Currently trading at 1.9021
- We closed out the week with Canada’s Building permits and trade balance falling short of expectation. This reversed the early morning gains made by the Loonie.
- A relatively quiet day on the calendar, with the only real driver being Housing Starts data from Canada which is being predicted to decline. With this in mind, stress is on the Loonie carrying a downside risk.
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