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 August 16th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1346
US$/GBP – 1.6321
CHF/GBP – 1.2735
CAN$/GBP - 1.6055
AUS$/GBP – 1.5642
ZAR/GBP – 11.6730
JPY/GBP – 125.37
HKD/GBP – 12.7269
NZD/GBP – 1.9635
SEK/GBP – 10.5012
US$/EURO - 1.4381

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling gained against the US dollar yesterday, but failed to break beyond $1.64/£1 as selling from sovereign investors hampered its efforts, undermined by concerns about the UK recovery. Figures showed that asking prices for residential property fell this month from a year earlier for the first time since September 2009 dropping by 3.4% in London, underlining the patchy recovery despite stubbornly high inflation. Investors expect the Bank of England to keep interest rates at record lows into 2013, with a growing feeling that we may see another round of quantitative easing before too long. Out today we have inflation figures so call in now for a live exchange rate.

In the euro zone, the euro gained to a 3 week high against the US dollar, strengthening as investors expected a positive outcome to today’s meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel to discuss the debt crisis. These gains are likely to be capped by persistent worries over the region’s banking sector and a perceived risk to France’s credit rating. In addition, the euro was helped by large gains against the Swiss franc on speculation that the Swiss currency would be pegged against the euro in an attempt to weaken the Swiss franc and help Swiss exporters. GDP figures are released today so call in now for a live exchange rate.

In the USA, stock markets rose following a three-week drop for the S&P 500 Index on improved risk appetite, but data showing foreigners were net sellers of all US assets in June for a second straight month and poor manufacturing figures weighed on dollar sentiment. In addition, Vice President Joe Biden is expected to discuss China’s currency valuation on his upcoming trip to the country. The Chinese yuan is kept artificially cheap and has damaged US manufacturing as producers are priced out by cheaper Chinese manufacturing.

Elsewhere, the Swiss franc dropped to two-week lows against the euro and dollar on Monday on speculation the Swiss National Bank could further act to curb strength in the currency by setting an exchange-rate target as early as this week. The South African rand strengthened against the US dollar for a fourth day as commodity prices rose on optimism the global recovery is intact, supporting demand for higher-yielding assets. Call in now for a live rate.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Leave a Reply

You must be logged in to post a comment.

Posted August 15th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1364
US$/GBP – 1.6260
CHF/GBP – 1.2905
CAN$/GBP – 1.6061
AUS$/GBP – 1.5592
ZAR/GBP – 11.5820
JPY/GBP – 125.07
HKD/GBP – 12.6770
NZD/GBP – 1.9402
SEK/GBP – 10.5074
US$/EURO – 1.4303

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling gained against the US dollar on Friday, boosted by a better tone in stock markets but hampered by lingering concerns over the UK economy and the fact that interest rates are set to stay on hold for some time. Sterling has begun to demonstrate signs of safe-haven demand as global investors diversify away from the US dollar and euro, but this wasn’t helped by the widespread looting and images of burning buildings that dominated news headlines last week. In the coming week we have UK inflation figures released tomorrow that came in at 5%. Whilst the Bank of England has largely given up on its 2% target, it will hope that they are lower. Wednesday sees the minutes from the Bank’s most recent meeting. Call in now for a live exchange rate.

In the euro zone, the extreme volatility last week and widespread rumours over the sovereign debt crisis left investors very jumpy. News over the weekend suggested that German ministers were close to caving in to the idea of a common ‘euro bond’. This move towards a closer fiscal union is seen as a great move and would certainly reduce the volatility we have seen on bond markets in relation to Italian, Spanish and Greek government bonds. Infamous former hedge fund manager yesterday called for Greece and Portugal to quit the euro completely. Out this week we have European 2nd Quarter GDP – bad results would worry the markets so call in now for a live exchange rate.

In the USA, markets will be hoping for a less turbulent start to the week than last Monday when stock markets plummeted after the US credit rating was downgraded. However, comments from the head of the World Bank will not help. Robert Zoellick warned that recent events had pushed us into a new ‘danger zone’ and that leaders in the US and elsewhere should wake up to the severe loss in market confidence in their economic leadership. Call in now for a live exchange rate.

Elsewhere, Swiss and Japanese authorities are simultaneously threatening to take action to halt the appreciation of their currencies against the US dollar. As investors seek refuge from risk amid increased risk and turmoil, they are increasingly turning to the Swiss franc and Japanese yen.  The euro and US dollar have jumped by nearly 3% against the Swiss franc this morning on rumours that the Swiss National Bank will peg the exchange rate against the euro. Call in now for a live price.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 12th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1406 
US$/GBP -
1.6211
CHF/GBP -
1.2294
CAN$/GBP -
1.6022
AUS$/GBP -
1.5771
ZAR/GBP - 11.7802

JPY/GBP -
124.49
HKD/GBP - 12.6391
NZD/GBP -
1.9737
SEK/GBP -
10.5711
AED/GBP - 5.957
US$/EURO -
1.4212

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling strengthened against the US dollar on Thursday after U.K. Chancellor of the Exchequer George Osborne rebuffed opposition demands to review spending cuts. In a turbulent week that has seen wide swings up and down on the stock markets and the Bank of England cut the UK’s growth forecast, sterling gained on Thursday as the coalition stood by its austerity measures. Widespread rioting and looting had some impact earlier in the week, seeing sterling slip as investors questioned the UK’s new found safe haven status in the face of widespread destruction. However, this was soon brought under control and sterling recovered ground towards the end of the week. Call in now for a live price.

In the euro zone, the euro gained against the Swiss franc on Thursday, surging 6%, boosted by talk that the Swiss currency could be pegged against the euro. This week we have seen the ECB taking action to stabilise bond markets by purchasing Italian and Spanish bonds and this seems to have calmed bond markets to an extent. In France, speculation was rife this week that the country would suffer a credit rating downgrade given the country’s exposure to Greek debt. In addition, 4 countries in the euro zone announced a ban on short selling in the stock markets in an attempt to calm the huge volatility. Call in now for a live exchange rate.

In the USA, stocks rose again on Thursday following the worst plunge since the bull market began in 2009, as an unexpected drop in jobless claims slowed concern that the world’s biggest economy is slowing. US jobs claims for unemployment benefits fell by 7,000 to the lowest level since early April. The US dollar and euro both gained against the Swiss franc as the Swiss central bank said it could ease monetary policy further. Out today there is retail sales data so call in now for a live price.

Elsewhere, the commodity currencies have come under a little pressure in the last week as investors pull out of riskier investments given the market turmoil. One major beneficiary has been sterling, which surged to the highest level against the South African rand since late February this week. Australian unemployment jumped to 5.1% in July from 4.9 percent a month earlier. Thursday saw the New Zealand dollar after prices of commodities gained. Call in now for a live exchange rate.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 11th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1344
US$/GBP – 1.6201
CHF/GBP – 1.1839
CAN$/GBP – 1.6011
AUS$/GBP – 1.5735
ZAR/GBP – 11.54
JPY/GBP – 123.98
HKD/GBP – 12.6330
NZD/GBP – 1.9686
SEK/GBP – 10.5288
US$/EURO – 1.4261

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling fell by 1% against the US dollar yesterday after the Bank of England downgraded its economic growth forecast for the UK. Sterling dropped to $1.6117/£1 after the Bank lowered expectations for growth to around 2% in the final quarter of 2011 in its quarterly inflation report. It also added that it expected inflation to drop rapidly next year. Sterling recovered against the euro though as debt problems and sovereign risk dogged the single currency following speculation that France will be the next country to lose its AAA credit rating after the USA. Stock markets continued to slump as investors worried that the USA or euro zone would not be able to rein in debt burdens and avoid a double-dip recession. Call in now for a live exchange rate.

In the euro zone, European shares ended sharply down yesterday, led lower by a steep sell-off in banking shares, with Societe Generale down more than 21% at one point on a slew of rumours about the bank. As a result, the euro plummeted against the US dollar and Swiss franc as concerns grew about possible trouble at French banks with large exposure to peripheral euro zone debt. Despite the ECB’s purchase of Italian and Spanish bonds, this has failed to quell concerns over the European banking system. Call in now for a live exchange rate.

In the USA, the US stocks fell again following a rebound the day before. Interestingly, Goldman Sachs expects the US dollar to weaken and recommended that its clients ‘go short’ or bet against the US currency. Markets remain concerned that the USA has no real plan to reduce its deficit and that it will plunge into recession again – with all possible stimulus methods now exhausted. Call in now for a live exchange rate.

Elsewhere, commodity based currencies such as the Australian and New Zealand dollars saw heavy losses. The higher-yielding Australian dollar dropped 1.6 percent against the U.S. currency, while the New Zealand dollar slumped 3.3 percent. However, the South African rand rebounded from a 1 year low against the US dollar as the Federal Reserve pledged to keep interest rates at near zero into next year.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 10th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1334
US$/GBP – 1.6260
CHF/GBP – 1.1728
CAN$/GBP - 1.5971
AUS$/GBP – 1.5708
ZAR/GBP – 11.6620
JPY/GBP – 124.75
HKD/GBP – 12.6940
NZD/GBP – 1.9504
SEK/GBP – 10.4982
US$/EURO - 1.4326

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling plummeted yesterday afternoon against the US dollar and euro, dropping by 1.2% against the euro as poor data and spreading looting and violence in the UK concerned investors. Manufacturing figures unexpectedly showed a 0.4% contraction against an expectation of a 0.2% gain and the trade deficit unexpectedly widened. In addition, markets clearly became concerned over the escalating rioting in the UK which had spread as far as Liverpool and Birmingham. At the end of last week, investors saw the UK as a safe haven, but with all the damage being done markets are concerned that this will impact the UK’s already weak growth even further. Later today we have the Bank of England’s inflation report, in which the Bank is expected to downgrade growth forecasts. Call in now for a live exchange rate.

In the euro zone, the euro strengthened against the US dollar yesterday as European Central Bank President Jean-Claude Trichet said the ECB was actively buying Spanish and Italian government bonds. German exports slipped unexpectedly and with stock markets still experiencing volatility and panic, the euro dropped further against the safe-haven Swiss franc. The euro has fallen by roughly 15% against the franc so far this year. Some analysts even speculated that the Swiss franc could reach parity (1:1) against the euro, despite the Swiss National Bank’s recent move to cut interest rates and warnings over the franc’s strength. Call in now for a live exchange rate and to avoid losing out.

In the USA, the markets rebounded off yesterday’s lows as investors focussed on Tuesday evening’s meeting of the Federal Reserve. Recent manufacturing and employment data in the country has pointed to a slowdown in the world’s biggest economy, leading some to fear the country could slip back into recession. Many expected Fed Chairman Ben Bernanke to announce some form of stimulus to stabilise the economy. However, with interest rates at near zero and the last round of bond purchases having failed to stimulate credit conditions, some were unsure what options the Fed has left. In the end, the Fed pledged to keep interest rates on hold until at least 2013. Call in now for a live exchange rate.

Elsewhere, the Swiss franc soared on Tuesday to record highs for a third straight day against the euro and dollar as concerns about the global economic outlook and a rout in stock markets drove investors to safety. In addition, the Japanese yen, which also tends to benefit in times of market stress, breached 77 yen per dollar, above levels that triggered official intervention from Tokyo last week. Volatility in the safe havens is high, so call in now for a live exchange rate.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 9th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1451
US$/GBP – 1.6345
CHF/GBP – 1.2374
CAN$/GBP – 1.6230
AUS$/GBP – 1.6015
ZAR/GBP – 11.7620
JPY/GBP – 126.41
HKD/GBP – 12.7628
NZD/GBP – 1.9912
SEK/GBP – 10.5562
US$/EURO – 1.4256

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling traded close to a two-month high against the euro yesterday as investors worried that the European Central Bank purchasing of Spanish and Italian bonds would have minimal impact on the debt crisis. With no UK data released and the focus on Europe and the USA, sterling’s value was driven by risk sentiment. In a day that saw the FTSE 100 drop by 3.39% and £46bn wiped off the value of the UK’s top 100 companies, sterling made gains against both the euro and US dollar as investors bought into what is now seen as a safe haven asset. The pound fell just short of $1.65/£1 against the US dollar, but slipped back on rumours that the Bank of England will resort to further quantitative easing to boost the UK’s anaemic growth. Call in now for a live exchange rate.

In the euro zone, the ECB made good on the weekend’s promise by making moves early in the day to buy Italian and Spanish bonds to keep yields on those bonds at manageable levels. However, this did little to curb panic in the markets over the sovereign debt crisis. Stock markets plummeted across the region. Greece suspended short selling on its stock market after falling by 6% and the panic spread to France. Normally seen as a stalwart of the European region, rumours circulated yesterday that the country would be next in line for a credit rating downgrade after the USA’s rating cut late on Friday. The euro shrugged off initial gains from the ECB’s purchases, hitting a record low against the Swiss franc and dropping by 1.6% against the Japanese yen.

In the USA, following a downgrade of the USA’s credit rating on Friday, global stock markets went into freefall yesterday. The US dollar slid against the Japanese yen and Swiss franc as investors looked to safer haven currencies. In addition, manufacturing and consumer spending figures showed a contraction and added to concerns that the US recovery is slowing. Panic over the credit rating downgrade left many investors dumping stocks. One rating agency came out and affirmed it’s AAA rating but this did little to help. Call in now for a live exchange rate.

Elsewhere, the safe haven Swiss franc and Japanese yen soared against the US dollar and euro after the US debt rating downgrade and on fears the euro zone debt crisis could spread, despite efforts to contain it. Investors gave commodity currencies a very wide berth, with the South African rand plummeting by 3% against the US dollar and sterling as traders reversed riskier investments. The Australian dollar also slipped but recovered in later trading. Call in now for a live exchange rate.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 8th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1443
US$/GBP – 1.6445
CHF/GBP – 1.2431
CAN$/GBP - 1.6122
AUS$/GBP – 1.5880
ZAR/GBP – 11.4250
JPY/GBP – 128.10
HKD/GBP – 12.8389
NZD/GBP – 1.9790
SEK/GBP – 10.6003
US$/EURO - 1.4354

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling had a relatively positive week last week, hitting a 3 month high of €1.1550/£1 against the euro on Thursday. In a turbulent week for financial markets, the FTSE 100 closed the week down nearly 10% and events over the weekend did little to help that. Saturday saw credit rating agency S&P cut the USA’s credit rating by one notch from AAA to AA+ and last night European Central Bank President Jean-Claude Trichet announced that the ECB will start buying Italian and Spanish bonds in order to stop the sovereign crisis extending to these countries. Out this week we have key trade data for the UK and also the Bank of England’s inflation report. Many expect that the Bank will downgrade the UK’s growth forecasts so call in now for a live exchange rate.

In the euro zone, Spanish and Italian bond yields jumped to record highs last week as investors questioned the ability of those countries to fund their borrowing. Italy has now brought forward moves to balance the government deficit by 2013 and the ECB will now step in to buy bonds and keep the borrowing costs low. Many commentators now feel that the euro cannot go on in its current format. A fiscal union is the next logical step – the issue being that the German electorate feels it is bailing out the rest of Europe and has no control over tax levels in the bailed out countries. Call in now for a live exchange rate.

In the USA, investors awoke on Saturday morning to the monumental news that the country had been downgraded by rating agency S&P – losing the precious AAA credit rating. Naturally the move attracted criticism from all angles in the USA, but the key point is that the USA is the only country whose net spending as a proportion of GDP has increased since the start of the credit crisis, so this is hardly a large surprise. Expect to see significant volatility today so call in now to ensure you don’t lose out.

Elsewhere, the news from the USA and Euro zone over the weekend saw the Japanese markets open down 1.7% and the New Zealand stock exchange opened 3% down. Stock markets are plunging as a result of the weekend’s developments so call in now to ensure you are adequately protected. 

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 5th, 2011 by Charles Purdy

Daily Currency Note


EURO/GBP -
1.1544
 
US$/GBP - 1.6263
CHF/GBP - 1.2475
CAN$/GBP - 1.5976
AUS$/GBP - 1.5563
ZAR/GBP - 11.2956
JPY/GBP - 127.60
HKD/GBP - 12.6944
NZD/GBP - 1.9463
SEK/GBP - 10.6451
AED/GBP - 5.972
US$/EURO - 1.4084

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling has had an interesting week – hitting a 3 month high against the euro yesterday of €1.1550/£1. The pound fell early in the week after poor manufacturing data, but recovered as services sector activity unexpectedly jumped. In the wake of an 11th hour agreement on raising the debt ceiling in the USA, there has been the beginnings of a paradigm shift in the market attitude to the UK. UK government bonds are now being regarded as the safe-haven option ahead of US bonds. This marks a step change in market behaviour and is testament to the UK government’s hard-line cost cutting that is in stark contrast to both the US and the euro zone. The Bank of England kept interest rates on hold but there is a large amount of volatility so call in now for a live exchange rate.

The euro plummeted on Thursday after the ECB pledged to lend euro-area banks as much money as they need for six months and extend its existing liquidity measures through until the end of the year. Keeping the interest rates unchanged at 1.50%, ECB President Jean-Claude Trichet told a press briefing in Frankfurt that the decision was taken with an “overwhelming majority.” The move prompted investors to sell the single currency in favour of sterling despite an unexpected rise in German factory orders. Italian and Spanish bonds came under yet further pressure and it looks like these countries are next in the firing line. Call in now for a live exchange rate.

It was an interesting week in the USA after Democrats and Republicans finally reached agreement over spending cuts in order to increase the debt ceiling. In a package worth $2.1trn over 10 years, the US managed to avoid a default on a key payment this week. However, despite reaching agreement, some credit rating agencies feel that the US may have not gone far enough and as such the prized AAA rating is at stake again. Call in now for a live exchange rate.

Elsewhere, Swiss and Japanese central banks intervened in the currency markets to try and devalue their respective currencies. Swiss exporters have been hit by a 40% increase in the value of the currency as markets clamber for the safe-haven of the Swiss franc. The Swiss National Bank cut interest rates and the Japanese government sold 1 trillion yen to ease pressure on the yen. Call in now for a live exchange rate. 

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 4th, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1427
US$/GBP – 1.6357
CHF/GBP – 1.2696
CAN$/GBP - 1.5801
AUS$/GBP – 1.5322
ZAR/GBP – 11.0732
JPY/GBP – 129.97
HKD/GBP – 12.7571
NZD/GBP – 1.9228
SEK/GBP – 10.3811
US$/EURO - 1.4301

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling climbed against the US dollar and briefly touched €1.15/£1 against the euro after data unexpectedly showed that services sector activity expanded at the fastest pace in four months. Whilst this provided a welcome piece of positive economic data, analysts were keen to point out that the UK recovery is still very fragile. Figures released earlier in the week showed a sharp contraction in the level of manufacturing in the UK. Sterling ended the day up 0.85% against the US dollar and posting 1% gains against the Australian and Canadian dollars. Investors have been disappointed at relatively weak UK economic data over recent months, but some analysts are feeling cautiously optimistic that the UK government’s austerity drive will put the economy in a much stronger position than the USA or euro zone. Call in now for a live exchange rate.

In the euro zone, the euro strengthened against the US dollar yesterday after stronger than expected retail sales figures provided a welcome boost to the economic prospects of the region. Sales rebounded by 1% after the previous month’s contraction. In addition, the euro surged by 2% against the Swiss franc after an unexpected interest rate cut by the Swiss National Bank. The SNB cut interest rates and pumped in liquidity in an attempt to weaken the “massively over-valued” Swiss franc which is at record highs against many currencies following safe haven flows. Call in now for a live exchange rate.

In the USA, credit rating agency Fitch affirmed its AAA credit rating for US government debt following Congressional approval of a $2.1trn package of spending cuts, but warned that the US government must cut the debt burden in order to avoid a future default. Poor PMI data saw the US dollar drop to an all time low against the Swiss franc before the SNB’s rate intervention. There are concerns that other ratings agencies will downgrade the US on the grounds that the package does not go far enough. Call in now for a live exchange rate.

Elsewhere, with the SNB cutting interest rates in Switzerland, markets are poised for the Bank of Japan to follow suit in expanding the size of its asset buying programme. In a similar vein to the Swiss franc, the Japanese yen has surged against other currencies as investors look for safe haven investments. Call in now for a live rate to ensure you don’t lose out. 

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

Posted August 3rd, 2011 by Charles Purdy

Daily Currency Note

EURO/GBP - 1.1453
US$/GBP – 1.6264
CHF/GBP – 1.2422
CAN$/GBP – 1.5671
AUS$/GBP – 1.5179
ZAR/GBP – 11.1290
JPY/GBP – 125.49
HKD/GBP – 12.6851
NZD/GBP – 1.8931
SEK/GBP – 10.4851
US$/EURO – 1.4156

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx  

Sterling fell to the lowest level for two weeks against the US dollar as data showed U.K. construction weakened amid mounting concern that U.S. spending cuts may curb global growth. The pound also hit an all-time low against the Swiss franc after building activity slipped in June – adding to the poor outlook after British manufacturing unexpectedly shrank the most in more than two years yesterday. Sterling had been benefiting from the dual debt crises in Europe and the USA, but focus has shifted back to UK fundamental figures. UK bonds are now cheaper than US ones showing that markets now view UK debt as a safer haven than the USA which has been the benefactor of safe haven flows for several years. The Bank of England meet tomorrow and are likely to keep rates on hold at 0.5% – call in now for a live exchange rate.

In the euro zone, Italian and Spanish bonds came under pressure again yesterday, with yields jumping to euro-era records on concern that a slowdown in global growth will stop efforts to trim sovereign debt. The euro strengthened against the US dollar as poor US spending figures dented the US dollar. Out today, there are retail sales figures and purchasing data for the euro zone so call in now for a live exchange rate.

In the USA, Congress granted final approval to a deficit-cutting package that will avert a U.S. debt default but may not be enough to prevent a damaging downgrade of the top-notch American credit rating. One rating agency warned earlier in the week that if the deal did not go far enough, it would downgrade the USA’s AAA rating. This would raise borrowing costs and dent the recovery further. Despite being passed into law, markets tumbled with US stock markets closing down nearly 3%. Further consumer spending figures showed the first drop since 2009 compounding market fears.

Elsewhere, the Canadian dollar fell to a 2 week low as the poor US spending figures dented prospects for the country’s largest trading partner. The Swiss franc strengthened against all major peers tracked by Bloomberg. European stocks fell to a 10-month low on concerns over sovereign debt. Call in now for a live exchange rate. .

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

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