The Pound is tumbling down against the Greenback

Tuesday, March 2, 2010

After a relatively slow end to last month, the forex online market is set to be hit with a fresh wave of volatility within the next few days, as the month of March kicks off with four central bank’s rate announcements.

Yesterday the Canadian Dollar surged against its American counterpart, on the back of higher than anticipated GDP. The GDP beat expectations and rose by an annualized 4.0% in the fourth quarter of last year fueled by an increase in retail sales, consumer spending, exports and robust housing sector. The USD/CAD plummeted from a session highs of 1.0575 to hit a new session low of 1.0475. The loonie appreciated a total of 1.04% yesterday against its U.S counterpart, to close at $1.04106.

Across the Atlantic, the pound tumbled to a new 10 month low as fears continue to grow that the UK will have a hung parliament. The currency fell 1.6% against the greenback, dropping below the $1.5 mark, for first time since May, as the Labor party’s majority narrows. The Pound suffered across the board sliding to its lowest level against the Euro since early last December, as well as hit a one-year low against the Japanese Yen of 132.07 and plumbed its weakest in 25 years against the high-yielding Australian Dollar.

Despite a better than expected manufacturing PMI, the Pound brushed the news that the manufacturing sector remained at its previously reported 15 year high of 56.6. Out later today, the construction PMI is predicted to show to that house price have continued to rise in the last seven months, however, the rate of increase is expected to have slowed from 0.6% in January to 0.3% in February.

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