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Posted September 30th, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.164
US$/GBP – 1.585

CHF/GBP – 1.550
CAN$/GBP – 1.636
AUS$/GBP – 1.637
ZAR/GBP – 11.038
JPY/GBP – 132.02
HKD/GBP – 12.303
NZD/GBP – 2.148
US$/EURO – 1.361

Sterling fell again against the euro yesterday after Tuesday’s downbeat comments by a key Bank of England policy maker left sterling under severe pressure from investors. Sterling dropped to a 4 month low of 1.1590/£1 as markets became more and more concerned over the prospect of further Quantitative Easing. Sterling held steady against the US dollar. In a speech on Tuesday, Monetary Policy Committee member Adam Posen said that the central bank should start pumping more money into the economy in order to avoid a prolonged slump of the sort that Japan saw in the 1990’s. These comments certainly came as a surprise and saw sterling follow the US dollar down against the euro. Despite dropping a long way on Tuesday, poor UK data saw sterling drop further. The pace of service sector activity came in worse than expected and mortgage approvals stayed flat. In terms of data, there is key house price data which could see sterling drop even further if this dents the UK’s prospects. Call in now to speak to one of the team and prevent yourself from losing out further.

In the Euro zone, there was no real data out yesterday and the euro continued to trade on weak US and UK sentiment hitting a 4 month high against sterling and breaching the $1.36/1. A number of technical levels were breached which also pushed the euro higher. ‘Technical levels’ are points on the graph of a currency price which traders follow very closely. Any deviation upwards or downwards means that traders buy or sell based on where they feel the prices are going. In terms of data out today, there is German unemployment data and inflation data for the Euro zone. Expect the single currency to continue to strengthen on poor UK and US sentiment, so speak to a trader today to secure your exchange rate.

In the USA, the US dollar continued to suffer yesterday – especially against the euro – as concerns remained over further Quantitative Easing by the Federal Reserve. This is widely expected to be announced at the end of the Fed’s next meeting on November 2-3rd. There was no real data released yesterday, but last night there was an interesting Bill passing through the US Senate. The house is expected to enact a law that treats the artificially weak Chinese exchange rate as a subsidy and impose duties on goods imported from China to remove the artificially unfair advantage that the Chinese yuan currently enjoys in the global market. Given that most Chinese goods brought to the UK are paid for in US dollars, this could have far reaching consequences. Speak to one of the research team about what effect this is likely to have.

Elsewhere, a major hedge fund reported that the Japanese central bank is preparing a fresh round of monetary easing after a poor manufacturer’s survey and a stubbornly strong currency. Japan wants to boost exports by keeping the Japanese yen low, and given the struggling recovery and the fact the currency is near a 15 year high against the US dollar, this is understandable.

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Posted September 29th, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.164
US$/GBP – 1.586

CHF/GBP – 1.544
CAN$/GBP – 1.628
AUS$/GBP – 1.631
ZAR/GBP – 11.022
JPY/GBP – 132.58
HKD/GBP – 12.303
NZD/GBP – 2.142
US$/EURO – 1.362

Sterling fell by over 1% against the euro yesterday after downbeat comments by a key Bank of England policy maker left sterling floundering despite hitting a 7 week high of $1.5896/£1 against the US dollar. In a speech to the Hull Chamber of Commerce, Monetary Policy Committee member Adam Posen said that the central bank should start pumping more money into the economy in order to avoid a prolonged slump of the sort that Japan saw in the 1990’s. The markets were not expecting the negative comments and they contrasted sharply with his colleague Andrew Sentance who stated that the Bank didn’t need to restart the Quantitative Easing programme. Sterling hit a low of 1.1634/£1 and $1.5720/£1 following Posen’s comments despite strong data elsewhere. The UK’s trade deficit showed a stark improvement, jumping from -£9.6bn to -£7.4bn which shows that exports are improving. In addition, a survey by the CBI showed a marked increase in sales volume amongst retailers which was positive. However, this data was surpassed by the panic that the unexpected comments made. Today, we have lending data and consumer confidence figures. Speak to a trader now to stay abreast of the volatility.

In the Euro zone, it was a mixed day. Initially, the euro fell against the US dollar after speculation that Spain’s credit rating may be downgraded further by rating agency Moodys. However, weak US data and comments from European Central Bank Board member Juergen Stark helped boost the euro. Mr. Stark stated that the ECB may not renew some of the monetary support measures when they expire later in the year. In addition, there were reports that a former Chinese bank adviser had described the US dollar’s devaluation as “inevitable”. In terms of data, consumer climate data came in better than expected. There is no real data out today – although the euro is expected to give back ground to sterling as the annual EU farm subsidy is converted into sterling. Call in now for a live exchange rate.

In the USA, the US dollar suffered yesterday as concerns remained over further Quantitative Easing by the Federal Reserve. This is expected to be announced at the end of the Fed’s next meeting on November 2-3rd. Gold yet again hit a record high today, and US bond yields followed suit as investor confidence plummeted and investors looked for safer haven assets to invest in. Consumer confidence fell in September after poor business conditions and weak employment figures. This, combined with the fact that house prices fell to within touching distance of multi-year lows in July saw the US dollar drop further. Get in touch now to ensure you take advantage of this volatility.

Elsewhere, the Japanese yen has strengthened back up to pre-intervention levels against the US dollar. This sparked concerns that the Japanese government will step in to the currency markets in order to maintain an artificially weak currency and protect their export market.

Posted September 28th, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.178
US$/GBP – 1.578

CHF/GBP – 1.554
CAN$/GBP – 1.633
AUS$/GBP – 1.650
ZAR/GBP – 11.125
JPY/GBP – 132.92
HKD/GBP – 12.247
NZD/GBP – 2.158
US$/EURO – 1.339

Sterling rose against the US dollar to hit a 7 week high of $1.5867/£1 as the US currency struggled to shake off concerns that the Federal Reserve would ease monetary policy further to stimulate the flagging recovery. The movement is clearly more down to US dollar weakness than sterling strength, as sterling’s continued weakness against the euro shows. Sterling continued to languish around the 1.1750 mark against the single currency, as the pound continued to track the euro’s recent strength against the US dollar. UK data didn’t help either, with a survey from property market researcher Hometrack showing that UK house price growth has fallen by 0.4% in September – the lowest rise for 18 months. However, the impact of this was limited, as a flagging housing market has already been priced in to sterling’s value. In terms of data today, the main release is the trade balance figures. Investors are desperate for exports to increase and start driving a ‘rebalancing’ of the economy from debt led growth to export led growth, and this figure will give a good idea of the situation. Additionally, the final GDP figure for the 2nd Quarter is released. This should remain unchanged at 1.2%. Call in now to ensure any unforeseen surprises don’t end up costing you more than they should do.

In the Euro zone, the euro continues to benefit from concerns in the USA. Against the US dollar, the euro is holding strong at $1.3480/1 as market participants back the single currency with the prospects of further Quantitative Easing in the USA. Monetary supply in the Euro region came in higher than expected showing a 1.1% increase against an expectation of 0.4%. More money flowing round the economy means better growth prospects, so this data helped the euro. It is quite incredible that sentiment towards Europe is as good as it seems given the serious structural issues that remain with debt in most of the region. There is a fair amount of data released today, with consumer spending, preliminary German inflation data and German consumer confidence data. Call in now to speak to one of the team about managing your risk in the run up to Christmas.

In the USA, gold hit an all time high of $1,300 per ounce and demand for US treasury bonds shot up. Further US bond auctions later this week are expected to see similarly high demand. The jump in demand for these ‘safe haven’ assets is as a direct result of the market expectation of further easing of US monetary policy by the US Federal Reserve. There was no real US data released yesterday, and today sees US consumer confidence which is expected to drop off marginally on last month. Call in now for a live price.

Elsewhere, the concerns over further US Quantitative Easing saw crude oil and commodity prices drop with Oil dropping below $77/barrel. Concerns over the global recovery left investors and analysts querying future demand for energy. As a result, commodity and resource based currencies – notably the Canadian dollar – fell yesterday as the currency tracked falls in the Canadian stock market. Get in touch now to ensure you don’t miss out due to adverse volatility

Posted September 27th, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.174
US$/GBP – 1.580

CHF/GBP – 1.559
CAN$/GBP – 1.620
AUS$/GBP – 1.648
ZAR/GBP – 11.084
JPY/GBP – 133.06
HKD/GBP – 12.256
NZD/GBP – 2.155
US$/EURO – 1.345

Sterling rose against the US dollar towards the end of last week and in early trading so far today. Sterling reached a high of $1.5842/£1 – a 6 week high – after poor US housing data added to an already weaker US dollar. Strong business sentiment in Germany helped the euro jump against sterling after the figures came in far better than expected. So far today, UK house prices have fallen by 0.4% in September according to a survey by property market researcher Hometrack. This is the 3rd consecutive decline in prices and the largest drop in 18 months. Analysts cited continued uncertainty regarding the economic outlook and concerns over the impact of the coming spending cuts and tax hikes. The rate of decline in house prices is likely to fall as new supply coming onto the market moderates and demand falls. For the rest of the week, keep an eye out for GDP data and consumer confidence figures. Call in and speak to one of the team to ensure you are protected.

In the Euro zone, the euro had a strong end to the week, strengthening to 1.1750/£1 as German consumer business confidence data came in far better than expected. There were some worries last week over the Irish economy. 2nd Quarter GDP for Ireland showed a 1.2% decline against an expectation for 0.5% growth which highlighted the struggle being faced by the country and other ‘peripheral’ European economies. Out today there is money supply data for the Euro zone, which is expected to show a rise of 0.4% in the year to August. Whilst this is positive, it is clouded by the lack of lending to ‘non-financial’ entities – i.e. everyone aside from the banks. This is a key issue globally in that banks have cheap credit available from governments and they have not been passing that on to consumers. Call in now to ensure that you protect yourself against adverse market movements.

In the USA, data was mixed last week with unemployment claims unexpectedly jumping from 453,000 to 465,000. However, later on data was released that showed existing home sales had increased from 3.8m to 4.1m. New home sales data on Friday was poor which saw the US dollar finish the week poorly – especially with the prospect of further Quantitative Easing looming. Out this week, there is 3rd quarter GDP released on Wednesday which could see some significant volatility in the build up to the announcement.

Elsewhere, Japan’s trade balance surplus shrunk to Y103.2bn as export growth fell for the 6th consecutive month. Exports to the USA and China increased the least since November 2009. The outcome hints that Japan’s export led recovery is stalling and that the Japanese government will need to step in yet again to artificially manage the value of the currency in order to promote exports and keep Japanese goods competitively priced. Speak to a trader today to ensure you have covered your next few payments.

Posted September 24th, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.175
US$/GBP – 1.566

CHF/GBP – 1.538
CAN$/GBP – 1.617
AUS$/GBP – 1.646
ZAR/GBP – 11.096
JPY/GBP – 132.85
HKD/GBP – 12.166
NZD/GBP – 2.149
US$/EURO – 1.333

Sterling rose against the euro yesterday as Euro zone data came in worse than expected and cast doubts over the validity of the region’s recovery. European Purchasing Manager’s data (which shows how much companies are buying) came in far worse than expected causing concerns that the business outlook for the region is looking poor. Sterling rose to 1.1799/£1 on the news and left Wednesday’s 4 month low behind. However, according to Spencer Dale (chief economist at the Bank of England), the UK faces “substantial headwinds” attributable to government spending cuts and tight lending conditions. This leaves a distinct possibility that the Bank of England will inject further money into the economy to stimulate growth. One question needs to be asked though – is the bank’s negative rhetoric a ploy to keep sterling weak and drive exports and a rebalancing of the UK economy? We shall have to wait and see… There is no data out today, so speak to a trader today to avoid missing out on sentiment based trading.

In the Euro zone, the euro had a poor day yesterday falling 0.6% against sterling and 0.5% against the US dollar after worries surfaced over the Irish economy. 2nd Quarter GDP for Ireland showed a 1.2% decline against an expectation for 0.5% growth which highlighted the struggle being faced by the country and other ‘peripheral’ European economies. Wednesday saw the Irish government deny that neither the country itself nor any of the banks within it would default on their debt. Bond markets reacted poorly to the news with the spreads on Irish bonds rose to a record high – a clear sign that investors are avoiding the country’s debt. Out tomorrow there is German business climate data so call in to ensure that you protect yourself against adverse market movements.

In the USA, data was mixed yesterday. Initially, the US dollar fell against the Japanese yen as the number of unemployment claims unexpectedly jumped from 453,000 to 465,000. However, later on data was released that showed existing home sales had increased from 3.8m to 4.1m. The US dollar recovered a lot of the ground lost against the euro in the last few days, but with the prospect of further Quantitative Easing looming it is hard to see the US dollar going much further at the moment. Out today, there is new home sales data – speak to a trader now to minimise your losses.

Elsewhere, the New Zealand dollar fell against its major counterparts after 2nd Quarter GDP growth figures disappointed. The data showed figures of 0.2% against an expectation of 0.7% growth. It marks a sharp drop in the currency and demonstrates the volatility that is prevalent in the commodity backed currencies. Call in now to discuss hedging strategies.

Posted September 23rd, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.168
US$/GBP – 1.566

CHF/GBP – 1.546
CAN$/GBP – 1.614
AUS$/GBP – 1.637
ZAR/GBP – 11.011
JPY/GBP – 132.47
HKD/GBP – 12.149
NZD/GBP – 2.140
US$/EURO – 1.339

Sterling fell to a 4 month low against the euro yesterday of 1.1662/£1 and a 2 month low against a basket of major currencies after the minutes of the Bank of England’s recent interest rate meeting showed that the Monetary Policy Committee were more willing to consider a fresh round of Quantitative Easing. Members voted 8-1 to hold rates with Andrew Sentance yet again standing alone in his call for an interest rate hike of 0.25%. The general consensus was that there were risks on both sides and stood ready to respond in either direction, with many feeling that it was more likely that they would need to inject further stimulus in the coming months. There was one upside today for sterling. The pound jumped against US dollar early this morning and broke the $1.57/ £1 barrier but this was more a function of a relatively weaker US dollar than sterling strength. Out today we have mortgage approval data which is expected to show a decline. Speak to a member of the team to protect yourself in case sterling drops even further.

In the Euro zone, the euro benefited from the prospect of further monetary stimulus in both the UK and the USA after the Federal Reserve left the door open to pump money into the economy if required. The euro saw a boost earlier in the week when Irish and Greek bond auctions saw higher demand than expected. With investors concerned over the UK and the US recoveries, the euro surged to a 5 month high of $1.3437/1 and a 4 month high against sterling of 1.1662/£1. Out later today there is a raft of Purchasing Manager Index data for France, Germany and Europe as a whole. Ensure you are taking advantage of this volatility – especially if you need to move euros into sterling. Speak to a trader today about fixing your budget into the next year.

In the USA, the financial markets were digesting the impact of the Federal Reserve’s interest rate decision that was released on Tuesday evening. There was a slight change in the language used, which effectively ramped up the level of readiness for an increase in the ‘accommodation’ level that the Fed provides. Effectively, this prepared the markets for more quantitative easing without actually altering monetary policy. In terms of data, there is weekly unemployment claims and existing home sales data. Speak to a member of the team to protect yourself against adverse market movements.

Elsewhere, New Zealand’s current account balance deficit widened to 3% of GDP in the 2nd quarter, marking the first drop in cross-border commerce’s contribution to economic growth since December 2008. This saw the NZ dollar drop off marginally against major counterparts as a result as investors looked elsewhere with concerns that the recovery there was stalling. Get in touch to prevent the markets from disrupting your payment.

Posted September 22nd, 2010 by Charles Purdy

Daily Currency Note

EURO/GBP – 1.177
US$/GBP – 1.569

CHF/GBP – 1.561
CAN$/GBP – 1.603
AUS$/GBP – 1.639
ZAR/GBP – 11.028
JPY/GBP – 133.15
HKD/GBP – 12.172
NZD/GBP – 2.128
US$/EURO – 1.331

Sterling fell to a 2 month low against the euro yesterday after stronger than expected demand for Irish and Greek government bonds eased concerns over European sovereign debt. Ireland sold 100% of the 1.5bn worth of bonds on offer and Greece managed to sell 390m worth of bonds – 72% of what was on offer. This saw sterling hit a low of 1.1810/£1 as the single currency surged on the strong sentiment that was generated by the bond auction. Sterling wasn’t helped after data was released showing that UK public sector borrowing hit a record high for August as interest payouts on UK government bonds shot up as a result of stubbornly high inflation. The data showed that the UK public sector spent £15.3bn more last month than it took in. In terms of today, there is yet more risk that sterling will drop in the form of the minutes of the Bank of England’s recent interest rate meeting. With concerns that the Bank are considering further Quantitative Easing, investors are keen to cast an eye over the discussions and thoughts of the decision makers. Speak to a trader now to protect yourself against further movements.

In the Euro zone, there were concerns last week over the debt crisis in Europe, as rumours spread that Ireland was seeking help from the International Monetary Fund (IMF). These were quickly allayed yesterday as the bond markets gave the emerald isle a vote of confidence by snapping up the bonds that were on offer. Greece also surprised many, and despite only selling 72% of the bonds that were on offer, this was seen as a huge step towards recovering some confidence in the financial markets. Out later today there is some business sentiment data for Belgium which is unlikely to cause too much of a stir. Speak to a trader now as the euro is likely to remain volatile – especially vs. sterling and the US dollar.

In the USA, despite the US dollar coming under significant pressure on Monday ahead of yesterday’s Federal Reserve interest rate decision, the announcement turned out to be a bit of a damp squib. There had been concerns that a further round of emergency stimulus would be pumped into the economy, but the Federal Reserve issued an almost identical statement to last month stating that “additional accommodation would be given [to the economy] if required” i.e. they would pump further money to stimulate as and when it was required. Early reaction following the announcement saw risk appetite improve and sterling strengthen by a cent on the day to just over $1.56/£1. Call in now and speak to one of the team about how best to take advantage of economic events such as interest rate announcements.

Elsewhere, Canadian inflation was milder than expected in August as energy price rises slowed and the Canadian recovery lost steam. This gives the Bank of Canada much more reason to pause its current interest rate hiking scheme and is likely to see the Canadian dollar pull back. The currency – known as the Looney – has recently come very close to parity (1:1) against the US dollar. Poor inflation data is not going to push it beyond that barrier anytime soon.

Posted September 21st, 2010 by Charles Purdy

Daily Currency Note 21/09/10

EURO/GBP – 1.186
US$/GBP – 1.551

CHF/GBP – 1.558
CAN$/GBP – 1.596
AUS$/GBP – 1.639
ZAR/GBP – 11.052
JPY/GBP – 132.56
HKD/GBP – 12.049
NZD/GBP – 2.131
US$/EURO – 1.308

Sterling fell to a 7 week low against the euro yesterday after poor UK data highlighted a slow UK recovery. Data showed that lending to businesses dropped for the 5th consecutive month in July and mortgage approval data showed the lowest number of new mortgages in over a year. Figures also showed that monetary supply – or the amount of money in the economy – dropped by 0.2% in August. All of this led investors and analysts to question the UK’s recovery further and saw renewed calls for an additional round of Quantitative Easing from the Bank of England to stimulate the economy. This saw sterling drop to 1.1887/£1 before recovering marginally to end the day above 1.19/£1. Against the US dollar, sterling slipped to a low of $1.5526/£1 despite holding firm above the $1.56/£1 level over the weekend. Out today, there is key public sector borrowing figures which are highly anticipated and will cause sterling movement. Make sure you don’t miss out by speaking to one of the team today.

In the Euro zone, there were no real data releases yesterday but there was positive news from Italy. The Italian trade deficit of 1.37bn showed a surplus of 1.75bn for last month. There were concerns last week over the debt crisis in Europe, as rumours spread that Ireland was seeking help from the International Monetary Fund (IMF). The Irish government quickly denied these rumours but the euro lost nearly a cent against the US dollar. Yesterday however, the euro recovered ground against the US dollar as markets grew concerned that the Federal Reserve would start a fresh round of emergency stimulus. Speak to one of the team today to prevent your payment costing more.

In the USA, the US dollar has been under further significant pressure yesterday ahead of today’s Federal Reserve interest rate decision. Concerns that a further round of emergency stimulus will be pumped into the economy saw gold reach a record high – testament to the level of uncertainty and concern that is prevalent in the marketplace. Aside from the interest rate decision, today sees new build housing data and building permits figures. All in all a lot in the pipeline, so make sure you have protected yourself by speaking to one of the traders ASAP.

Elsewhere, the Australian dollar continued to surge higher yesterday to hit a 2 year high against the US dollar after Glenn Stevens of the Reserve Bank of Australia stated that economic growth down under is likely to be “above trend” in 2011. This saw interest rate expectations surge with one gauge giving a 29% chance of an interest rate rise at the next meeting. The Japanese yen remained in a tight trading range after intervention from the Japanese government last week saw investors steer relatively clear of the currency.

Posted September 14th, 2010 by Charles Purdy

Daily Currency Note

EURO / GBP – 1.198 
US$ / GBP – 1.540
CHF / GBP – 1.545
CAN$ / GBP – 1.585
AUS$ / GBP – 1.651
ZAR / GBP – 11.017
JPY / GBP – 128.27
HKD / GBP – 11.965
NZD / GBP – 2.118
US$ / EURO – 1.285

Sterling performed well against the US dollar yesterday as positive Chinese data and new banking rules helped boost risk appetite amongst global investors. Sterling gained 0.5% against a generally weaker US dollar to hit $1.5488 as sentiment towards the pound was positive throughout the day’s trading. There was very little data out but the impetus came from Strong Chinese data that showed Chinese factory data was strong – despite efforts by the Chinese government to curb the buoyant economy and avoid an asset bubble. As a result, investors felt happier taking risks and moved funds out of US dollars and into ‘riskier’ currencies. In terms of data, there is inflation data released later this morning which will be very closely watched as many analysts fear a ‘double dip’ recession is looming in the UK. Any sign of this in the inflation figures and we will likely see sterling suffer. Call in now to ensure you don’t lose out.

In the Euro zone, the single currency held firm against sterling throughout the day with risk appetite seeing more demand for the euro than sterling. In Europe, risk appetite was helped by the announcement of the new Basel rules on capital adequacy. Known as ‘Basel III’, the rules force banks to almost treble the amount of capital they must hold on reserve in order to avoid a repeat of the financial crisis. This clarification has helped investors feel more confident about the recovery and saw European bank shares soar throughout much of the day, bringing European stock exchanges with them. Data wise, there is industrial data released tomorrow that is expected to show a mild improvement so call in now to take advantage of sentiment driven prices.

In the USA, the US dollar headed for its biggest fall against the euro since early July 15th as global risk appetite boosted high yield ‘riskier’ currencies. In addition, the new banking rules saw the single recovery receive an added boost and the US dollar slipped above $1.28/€1 for the first time since July. In terms of data, there is key monthly retail sales data that is expected to show a slight improvement. If it doesn’t, expect the US dollar to strengthen as investors look to move back into safer haven currencies. Call in now and speak to a trader to make sure you are protected.

Elsewhere, the Canadian dollar continues to hold its ground against other major currencies after last week’s interest rate hike and a strong employment report last week. Many traders expect a further hike in interest rates in October which is in clear contrast to other central banks around the world which are holding rates or potentially looking at injecting further money into the economy. Canada’s booming economy (similar to Australia) is as a result of strong demand for commodities – especially from China. Speak to a trader today to ensure you don’t miss out.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Posted September 2nd, 2010 by Charles Purdy

EURO/GBP – 1.203
US$/GBP – 1.540
CHF/GBP – 1.560
CAN$/GBP – 1.620
AUS$/GBP – 1.695
NZD/GBP – 2.155
EURO/US$ – 1.280

Sterling hit a 3 week low against the euro yesterday after UK purchasing manager data came in sharply lower than was expected. The survey asks business purchasing managers whether they have bought more or less this month, and is a key indicator of business activity. It dropped by nearly 3 points on last month to hit the lowest level since November last year. Sterling fell to 1.2007/£1 as a result and struggled against other currencies such as the Australian dollar. Against the US dollar however, sterling broke through a key technical level which saw it hit a high of $1.5444/£1 – above the key 200 day moving average level of $1.5434/£1 which is watched so closely by many traders. However, sterling has shed these gains this morning to drop to $1.5390/£1 as poor data released this morning increased demand for US dollars. The Nationwide house price index showed that house prices have dropped by 0.9% last month sparking concerns over the health of the UK recovery. There is construction sector data released later today which sees further potential for sterling to fall. Call in now for a live price.

In the Euro zone, German retail sales disappointed coming in at -0.3% against an expectation of 0.6% growth. Final European manufacturing purchasing mangers data showed a slight improvement, coming in at 55.1 against an expectation of 55.0. Eurozone PMI data has been boosted recently by a boost in Asian demand for European exports and relief following the recent EU bank ‘stress tests’. The latest figure is released today alongside revised GDP figures and the European Central Bank interest rate decision. This is expected to remain on hold, but get in touch now for a live exchange rate and to ensure any data doesn’t adversely impact your payment.

In the USA, whilst manufacturing purchasing data showed an improvement that was better than expected, the ADP non-farm payroll figures came in a lot worse than expected. There was an expectation that the figures would show that the US econo9my added 20,000 jobs last month, but the data showed a drop of 10,000 sparking fears that Friday’s ‘main’ non-farm payroll data will be worse than expected. Out today, there is further Unemployment data in the form of the US claimant count and pending home sales data released. Fed Chairman Ben Bernanke also testifies to the Senate. Call in now for an exchange rate.

Elsewhere, Australia’s trade balance surplus narrowed for the first 3 months in July. Exports slumped by 4.6% with shipments to China falling by 7.9%. Chinese demand for mined goods from Australia has kept the antipodean economy afloat. Overseas sales of coal dropped by 16%, sparking fears that the boost from China is drying up. Call in now for a live exchange rate.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

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