Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
  Daily Currency News Euro US Dollar Educational Articles  
Posted September 1st, 2010 by Charles Purdy

EURO/GBP – 1.210
US$/GBP – 1.540
CHF/GBP – 1.564
CAN$/GBP – 1.636
AUS$/GBP – 1.709
NZD/GBP – 2.189
EURO/US$ – 1.272

Sterling fell across the board on Tuesday as concerns over the global economy sent jitters through financial markets. Sterling dropped to a 5 week low of $1.5327/£1 – breaking through the 200 day ‘moving average’ which means there is likely to be further downward movement. Sterling also hit the lowest level against the Swiss franc since January 2009 and fell significantly against the Japanese yen. The Swiss franc, US dollar and Japanese yen are all ‘safe haven’ currencies and the extent of the demand for these safer holdings shows the level of poor sentiment that is prevalent in the global economy. Despite data showing that UK mortgage approvals increased and consumer credit improved last month, there was a clear feeling yesterday that the best of the UK data has already been seen and it is now a ‘high risk’ currency to invest in. In terms of data released today, there is manufacturing data which is expected to show a mild decline. Call in now to ensure you do not buy when the market has fallen further.

In the Euro zone, the euro also strengthened against sterling by 1.1% to hit 1.2064/£1 which is the highest in roughly 3 weeks. Many traders cited ‘month end’ demand for euro and one UK bank apparently moved a significant amount of sterling into euro which would have had a significant market moving effect. In terms of data yesterday, German unemployment dropped by 2,000 less than expected but Italian data surprised to the upside with retail sales improving by 0.3% and the unemployment rate dropping by 0.1% to 8.4%. Out today there is manufacturing data which is expected to remain the same. Get in touch now for a live price.

In the USA, yesterday saw poorer than expected purchasing manager data with the Chicago PMI figure showing a decline from 62.3 to 56.7. The minutes of the FOMC interest rate meeting were also published yesterday which did not show anything unexpected. The attention now shifts to the ISM index – another measure of purchasing managers’ sentiment towards the economy. This is expected to show a decline, and the ADP non-farm payroll figure is expected to show a much more modest 20,000 increase in monthly private employment. Call in now to ensure you don’t buy at a poor time.

Elsewhere, the Australian dollar surged in overnight trade as 2nd quarter GDP growth figures jumped to 1.2% against an expectation of 0.9%. This beat analyst forecasts and showed the biggest rise in 3 years. Chinese manufacturing data showed that industrial sector growth had accelerated for the first time in 3 months which is seen as supportive for Australian exports as China is the largest consumer of the nation’s mined goods. Speak to a trader now about where the Australian dollar price is heading.

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:

Leave a Reply

You must be logged in to post a comment.

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus