FX Roundup: Currency plays mixed but pound up on industrial data

The forex market failed to record dominant movements in favour of any major currency on Wednesday, as most global crosses saw mixed fortunes while the ongoing commodities rally eased pressure on exporters' currencies.

However, the pound sterling rose against the dollar, as data indicated that industrial production in the UK saw an above expectation rise in August.

According to the Office for National Statistics, industrial output climbed 1% month-on-month in August compared with a 0.4% decline in July and with analysts’ expectations for a 0.3% gain, boosted by a 6.0% gain in the mining and quarrying sector.

On a year-on-year basis, industrial production rose 1.9% compared with a 0.8% hike in July and with consensus expectations for a 1.2% gain, which was again driven higher by a surge in the mining and quarrying sector, which reported a 17.7% year-on-year increase.

At 1305 BST, the pound was up 0.53% against the greenback changing hands at $1.5307. Meanwhile, the dollar fell against the yen, shedding 0.07% changing hands at JPY120.150, while the euro fell 0.06% against the greenback changing hands at €1.1264.

The dollar was also trading 0.25% lower against its Canadian counterpart changing hands at CAD$1.3008, within sight of the USD/CAD 1.30 level.

Jane Foley, senior FX strategist at Rabobank, said, “Overall, we maintain the view that USD/CAD is likely to remain within a 1.30 to 1.34 range in the coming weeks. A break lower would likely be preceded by further gains in the price of oil and would put the USD/CAD1.2950 area into view initially.”

Other commodities-linked currencies also got respite, as the New Zealand dollar rose 1.14% against the greenback to change hands at US$ 0.6636, while the Australian dollar rose 0.84% changing hands at US$ 0.7226, with the Reserve Bank of Australia’s decision to hold interest rates on Tuesday supporting the currency.