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Posted December 31st, 2012 by Charles Purdy

Smart Daily Currency Note | Low volumes, lots of data, plenty of opportunity for rapid changes in rates

GBP/EUR – 1.2246
GBP/USD – 1.6162
EUR/GBP – 0.8162
EUR/USD – 1.3185
GBP/AED – 5.9337
GBP/AUD – 1.5568
GBP/CAD – 1.6078
GBP/CHF – 1.4792
GBP/HKD – 12.5293
GBP/HUF – 356.38
GBP/INR – 88.40
GBP/JPY – 139.20
GBP/NZD – 1.9622
GBP/SEK – 10.5178
GBP/ZAR – 13.7082

Sterling

Christmas cheer has done little to help sterling this week, enduring a torrid time against the euro dropping to a 8 month low of 1.2160. Sterling had been fairly range bound against the US dollar until yesterday, where it peaked at 1.6200 before dropping sharply to 1.6060. Data released yesterday showed that the number of new mortgages approved had risen by less than was expected; not a good sign for the UK’s housing market. There is no significant data expected to be released from the UK today – that being said, the markets remain extremely volatile with trading volumes particularly low during the holiday season, so call in now to speak to your trader.

Euro

The euro has had a fairly positive week despite the European market closures and Germany enjoying three days of bank holiday, reaching a 8 month high of 1.2160 against sterling and a 1 week high of 1.3280 against the US dollar. First thing this morning we saw French consumer spending data released and we also have the benchmark 10-year Italian bond auctions today. Call in now for the latest rates and a live update.

US Dollar

The US dollar has had a mixed week as traders try to second guess whether the so-called ‘fiscal cliff’ situation can be resolved by the January 1st deadline. The lack of resolve has damaged US consumer confidence with figures released yesterday showing a much greater drop than was expected. The President appears to be pushing for an interim deal to be struck to avoid the wave of tax reforms being implemented which many economists fear will push the US back into recession. Data released yesterday showed that the number of new people claiming unemployment related benefits rose by less than expected which is a good sign for the labour market in general. Housing data released showed that the number of new homes sold last month rose by less than was anticipated; but, prices had increased by more than expected. There is more housing data out today in the form of pending home sales and the market will hope for a more positive reading. Call in now to see how the markets will react with the impending fiscal cliff edging ever nearer.

Worldwide

Elsewhere, the Japanese yen’s movements have been well documented this week, continuing to weaken against all of its major peers whilst dropping to a 2 year low against the US dollar. Inflation data showed that the price of services purchased by corporations had deflated by 0.4%, whilst minutes from the latest Bank of Japan Monetary policy meeting revealed that the central bank will look to continue to loosen monetary policy with no specific end date in mind. Commodity backed currencies have also struggled towards the back end of the week as risk aversion increased due to the fears surrounding the US fiscal cliff situation. Call in now to see if the Japanese yen will continue to depreciate.

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Posted December 28th, 2012 by Charles Purdy

Smart Daily Currency Note | Christmas cheer fails to lift sterling

This week (Last week)

GBP/EUR – 1.2160    (GBP/EUR – 1.2308)
GBP/USD – 1.6107    (GBP/USD – 1.6251)
EUR/GBP – 0.8223    (EUR/GBP – 0.8124)
EUR/USD – 1.324    (EUR/USD – 1.3201)
GBP/AED – 5.9165    (GBP/AED – 5.9676)
GBP/AUD – 1.5508    (GBP/AUD – 1.5561)
GBP/CAD – 1.6015    (GBP/CAD – 1.6092)
GBP/CHF – 1.4697    (GBP/CHF – 1.4856)
GBP/HKD – 12.4882    (GBP/HKD – 12.5920)
GBP/INR – 88.31    (GBP/INR – 89.55)
GBP/JPY – 139.02    (GBP/JPY – 136.53)
GBP/NZD – 1.9597    (GBP/NZD – 1.9623)
GBP/SEK – 10.4820    (GBP/SEK – 10.6165)
GBP/ZAR – 13.6814    (GBP/ZAR – 13.8793)

Sterling

Christmas cheer has done little to help sterling this week, enduring a torrid time against the euro dropping to a 8 month low of 1.2160. Sterling had been fairly range bound against the US dollar until yesterday, where it peaked at 1.6200 before dropping sharply to 1.6060. Data released yesterday showed that the number of new mortgages approved had risen by less than was expected; not a good sign for the UK’s housing market. There is no significant data expected to be released from the UK today – that being said, the markets remain extremely volatile with trading volumes particularly low during the holiday season, so call in now to speak to your trader.

Euro

The euro has had a fairly positive week despite the European market closures and Germany enjoying three days of bank holiday, reaching a 8 month high of 1.2160 against sterling and a 1 week high of 1.3280 against the US dollar. First thing this morning we saw French consumer spending data released and we also have the benchmark 10-year Italian bond auctions today. Call in now for the latest rates and a live update.

US Dollar

The US dollar has had a mixed week as traders try to second guess whether the so-called ‘fiscal cliff’ situation can be resolved by the January 1st deadline. The lack of resolve has damaged US consumer confidence with figures released yesterday showing a much greater drop than was expected. The President appears to be pushing for an interim deal to be struck to avoid the wave of tax reforms being implemented which many economists fear will push the US back into recession. Data released yesterday showed that the number of new people claiming unemployment related benefits rose by less than expected which is a good sign for the labour market in general. Housing data released showed that the number of new homes sold last month rose by less than was anticipated; but, prices had increased by more than expected. There is more housing data out today in the form of pending home sales and the market will hope for a more positive reading. Call in now to see how the markets will react with the impending fiscal cliff edging ever nearer.

Worldwide

Elsewhere, the Japanese yen’s movements have been well documented this week, continuing to weaken against all of its major peers whilst dropping to a 2 year low against the US dollar. Inflation data showed that the price of services purchased by corporations had deflated by 0.4%, whilst minutes from the latest Bank of Japan Monetary policy meeting revealed that the central bank will look to continue to loosen monetary policy with no specific end date in mind. Commodity backed currencies have also struggled towards the back end of the week as risk aversion increased due to the fears surrounding the US fiscal cliff situation. Call in now to see if the Japanese yen will continue to depreciate.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Posted December 24th, 2012 by Charles Purdy

Smart Daily Currency Note | A day of two halves for sterling at the end of last week

GBP/EUR – 1.2255
GBP/USD – 1.6195
EUR/GBP – 0.8160
EUR/USD – 1.3216
GBP/AED – 5.9490
GBP/AUD – 1.5558
GBP/CAD – 1.6088
GBP/CHF – 1.4810
GBP/HKD – 12.5520
GBP/INR – 89.13
GBP/JPY – 136.75
GBP/NZD – 1.9698
GBP/SEK – 10.5697
GBP/ZAR – 13.8768

Sterling

It was a day of two halves for sterling on Friday, remaining fairly range bound against most of its major peers until the early afternoon when increased levels of risk-aversion saw a significant shift in favour of the traditional safe haven currencies. Increasing concern that deficit-reduction talks are not doing enough to help stave off the current ‘fiscal cliff’ saw sterling lose substantial ground versus both the US dollar and Japanese yen; undoing much of its previous gains. News that GDP data had been revised down from 1 per cent to 0.9 per cent also helped contribute to sterling’s poor performance. Friday also saw the release of better than expected current account data, while Public Sector Net Borrowing came out worse than previously forecast. As would be expected, this week sees very little news coming out of the UK, so call in now to see if Christmas cheer can help lift sterling.

Euro

Euro stayed fairly range bound against sterling on Friday; but fell by 0.5% against the US dollar. Little data was released across Europe, although German Consumer confidence came out slightly worse than forecast. The deputy prime minister also stated that Spain will struggle to meet its 2012 deficit target with its shrinking economy limiting the impact of budget cuts causing concerns for the currency. This week is very quiet on the euro front with little data released however, we will see French consumer spending as well as an Italian 10 year bond auction at the end of the week. Call now for the latest live rates.

US Dollar

The US dollar was in full rebound mode on Friday, with concern that a deal would not be reached over the fiscal cliff affair driving traders back to the safe haven currencies of the US dollar and Japanese yen, driving the price up. It is, unsurprisingly, a quiet week for data, and as long as the political brinkmanship over the fiscal cliff continues we could see the dollar continue to strengthen as thin trading volumes make other currencies look an even riskier proposition. Aside from this, some data is released on Thursday; unemployment and consumer confidence data is usually very influential, and good results have the potential to bring risk appetite back to the markets, but only if the fiscal cliff has been avoided. Get in touch now to get the most up to date price.

Worldwide

Elsewhere it seems impossible to keep the Japanese yen out of the headlines, as once again it was one of the biggest movers of the day. A significant shift from global risk appetite to aversion saw the yen strengthen dramatically versus its UK and European counterparts. It was a very different story for the Canadian dollar, falling to a two week low versus its US partner, as news that plans to allow higher taxes had been scrapped decreased demand for the currency. Friday also saw the release of slower than anticipated CPI inflation, along with GDP data remaining flat at 0.1 per cent. The majority of data out this week focuses on Japan, with Monetary Policy Committee minutes and Tokyo Core CPI inflation data being the two most prominent releases. Call in now to see if the current trends continue, and to get a live price from your trader.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Posted December 21st, 2012 by Charles Purdy

Smart Daily Currency Note | Christmas spirit favours the euro, will this last?

This week (Last week)

GBP/EUR – 1.2308    (GBP/EUR – 1.2303)
GBP/USD – 1.6251    (GBP/USD – 1.6128)
EUR/GBP – 0.8124    (EUR/GBP – 0.8126)
EUR/USD – 1.3201    (EUR/USD – 1.3104)
GBP/AED – 5.9676    (GBP/AED – 5.9241)
GBP/AUD – 1.5561    (GBP/AUD – 1.5284)
GBP/CAD – 1.6092    (GBP/CAD – 1.5864)
GBP/CHF – 1.4856    (GBP/CHF – 1.4871)
GBP/HKD – 12.5920    (GBP/HKD – 12.5032)
GBP/INR – 89.55    (GBP/INR – 87.64)
GBP/JPY – 136.53    (GBP/JPY – 134.98)
GBP/NZD – 1.9623    (GBP/NZD – 1.9082)
GBP/SEK – 10.6165    (GBP/SEK – 10.7218)
GBP/ZAR – 13.8793    (GBP/ZAR – 13.9372)

Sterling

Overall it has been a reasonable week for sterling. Although it touched a two month low of 1.224 against the euro, it has made strong gains against other major currencies. Wednesday saw sterling buy more dollar than at any point since September, hitting 1.6307, although this can probably be put down to dollar weakness in the shadow of the fiscal cliff as opposed to any particular strength for sterling. The most important news release were the minutes from this month’s monetary policy committee meeting. Although all 9 members remained unanimous in holding interest rates, they were less than positive about the economic outlook and one member voted in favour of increased quantitative easing. Today the office of national statistic publishes two important pieces of data; the current account and the public sector borrowing data. Both of which were considerably worse than anticipated last month. Current forecasts are not particularly positive, but markets will react nonetheless if the results exceed expectations and with thin trading volumes at the moment any movement could be amplified and become significant. Get in touch now for the most up to date rates.

Euro

The euro performed well all week, strengthening against its major peers and reaching eight and two month highs against the US dollar and sterling respectively. This was down to positive data coming out of Germany with improved business sentiment and the President of the European Central Bank (ECB) remaining positive about the future of the Eurozone, as well as another member of the ECB stating that he did not see the need for interest rate cuts. Greece also helped improve euro sentiment receiving its next bailout tranche, and news that Standard and Poor’s had improved Greece’s credit rating from selective default to B-. Today sees the release of very little news released from the Eurozone, with just German Consumer Climate data being released. Many eyes will remain fixed on the United States, with any news around the current fiscal uncertainty likely to impact the euro. Call in now to get the latest news from your trader.

US Dollar

The US dollar lost ground in the first half of the week as political rhetoric was far from helpful in resolving the problem of the fiscal cliff. Come Thursday both the Republicans and the Democrats began to give ground and we saw a small rebound for the US dollar. Friday see’s the release of manufacturing data from the US. The best outcome for the Dollar would be inclinations of an increase in activity signalled by rising purchasing orders. Yesterday saw the release of Home Sales and Manufacturing data, both coming out better than previously forecast. Today’s major data release focuses on core durable goods orders, forecast to see a slight decline on last month’s increase. Call in now to get a live price from your trader.

Worldwide

It was once more a week dominated by the Japanese yen, as the currency continued to lose substantial ground versus its major trading peers; touching nearly a 20-month low versus the US dollar. News that new Prime Minister, Shinzo Abe and the Bank of Japan had indeed increased quantitative easing as expected led to a significant sell off of the yen in favour of alternative currencies. It has been somewhat of a mixed week for the higher-yielding currencies, as a play-off between risk appetite and aversion has seen the likes of the Australian and New Zealand dollars fall throughout the week; with much cause being accrued to an apparent deadlock in negotiations between US politicians. Today, the major data releases focuses on Canada, with both core CPI inflation data and GDP expected to give an insight into the current economic climate. Call in now for the latest news and to get a live rate from your trader.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Posted December 20th, 2012 by Charles Purdy

Smart Daily Currency Note | Euro strengthens, US dollar weakens

GBP/EUR – 1.2284
GBP/USD – 1.6254
EUR/GBP – 0.8138
EUR/USD – 1.3216
GBP/AED – 5.9710
GBP/AUD – 1.5492
GBP/CAD – 1.6070
GBP/CHF – 1.4840
GBP/HKD – 12.6024
GBP/HUF – 351.96
GBP/INR – 89.14
GBP/JPY – 136.55
GBP/NZD – 1.9442
GBP/SEK – 10.6398
GBP/ZAR – 13.8231

Sterling

During the course of yesterday sterling reached a three month high against the US dollar peaking at 1.6307; but, dropped to a two month low of 1.2240 against the euro. The Monetary Policy Committee meeting minutes revealed the members voted 8-1 against an increase in quantitative easing with one member voting for a £25 billion increase as risks from the Eurozone crisis is easing and inflation danger is persisting. The Bank of England did say however that the strength of the pound had been damaging the UK economy, which led some to believe the central bank is eyeing up another round of quantitate easing in an attempt to weaken sterling and boost exports. As expected, all members of the MPC voted to keep interest rates on hold at 0.5 per cent. Key data released today will be the monthly report on UK retail sales. As always, this will provide us with an early look at consumer spending levels in the run up to Christmas, and in turn a good idea of the overall economic activity in the UK, so call in and find out which way will this has influenced sterling today.

Euro

The euro strengthened yesterday and reached an eight month high against the US dollar of 1.3307 based on positive data from Germany. Europe’s largest economy looks set to overcome recent troubles as German business sentiment again beat expectations. This was accompanied by positive thoughts regarding Greek debts across the Eurozone resulting. There is not much data out of Europe today and although we have seen some weakness for the euro overnight against both the US dollar and sterling, the euro’s recent strength has seen it pushing key resistance levels against major currency partners. We will have to see if it can break through and if so, how far it can go. Call in now for the latest update and a live rate.

US Dollar

After the US dollar was sold off through much of the day, dropping to multi month lows against both sterling and the euro, some strength returned in the afternoon as key resistance levels were not broken. The Fiscal Cliff continues to dominate both the political and economic landscape, but President Obama said in the late afternoon that he was optimistic about reaching a deal, despite threatening to veto the speaker’s proposition. As noted yesterday we wait to see if the dollar follows recent trends when on hitting a low it quickly reverses the trend, gaining on occasion up to ten cents. This suggestion could be supported if today’s unemployment data continues the positive trend of the last few months. Get in touch now to book in the high rates while they last.

Worldwide

Elsewhere, the Japanese yen continued to weaken yesterday, dropping to a one and a half year low against sterling ahead of the Bank of Japan’s (BoJ) last interest rate decision for 2012. The New Zealand Dollar weakened after whole-milk (a major export of NZ) prices fell for a fourth-straight auction showing a moderation in the nation’s growth. The Australian dollar also declined for a third day against the USD, following worries that the nation’s economy is slowing with further interest rate cuts anticipated by the central bank. In addition to the Bank of Japan’s (BoJ) last interest rate decision, overnight we will also see the release of New Zealand GDP and today we have Business Confidence data released. Later on today, the main release will be the Canadian Core Retail Sales figures. Call in now for the latest news and updates.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Posted December 19th, 2012 by Charles Purdy

Smart Daily Currency Note | The US dollar continues to weaken

GBP/EUR – 1.2284
GBP/USD – 1.6268
EUR/GBP – 0.8138
EUR/USD – 1.3232
GBP/AED – 5.9722
GBP/AUD – 1.5450
GBP/CAD – 1.6032
GBP/CHF – 1.4841
GBP/HKD – 12.6061
GBP/HUF – 353.08
GBP/INR – 88.91
GBP/JPY – 137.24
GBP/NZD – 1.9354
GBP/SEK – 10.7231
GBP/ZAR – 13.7672

Sterling

It was a somewhat mixed day for sterling yesterday as risk appetite was the main driver in the market. Sterling was slightly down against the euro and Swiss franc, but renewed confidence that a deal would be struck regarding the so-called fiscal cliff in the US drove sterling towards a high point close to 1.627, its highest level since September against the dollar. A broad swathe of inflation data was released, most of which slipped below projections, however, the crucial consumer price index data came in at 2.7%, nearly half a present over the forecast figure, which gave some support to sterling as it decreased the likelihood of more monetary easing in the short term. Today’s financial news in the UK will be dominated by the release of the minutes from this month’s monetary policy committee meeting which some expect to deviate from the recent unanimous decisions on interest rates. If the market reaction to last week’s speech by the ECB president on changing interest rates is anything to go by, any change could see dramatic consequence. Get in touch now to find out which way sterling has moved.

Euro

The euro continued its gains yesterday as the euro looked a less risky proposition given recent reports on the European Central Bank’s (ECB) new role as single banking supervisor and global risk appetite increased. The euro pushed through the 1.32 mark against the dollar reaching a 7 month high, which was matched by gains against the yen and the Australian dollar. Successful Greece and Spanish bond auctions also helped the single currency yesterday. The key data out today is a German survey on business conditions. Last month saw the first positive outlook in six months so a good set of data could support the euro further. However, some analysts suspect that there is very little to justify the euros period of strength and that we are due for a dramatic correction. Certainly poor results would cast doubts over the justification for current euro rate, so get in touch now to take the rates while it lasts.

US Dollar

The fiscal cliff continued to dominate the economic landscape yesterday, as it seems it will do until a concrete resolution has been agreed upon. Negotiations between the President and the Speaker of the House continue with the Speaker suggesting that he will go to Plan "B" if need be. The last time the US dollar was this weak  we saw a rapid reversal in its fortunes, including a 10 cent reversal for sterling back in April/May this year as traders viewed sterling to be "overbought". Important construction data is released today could look to start such a reversal, but reaction will most likely be muted in the current uncertain landscape. Get in touch now to take advantage of the US dollar rate while it lasts.

Worldwide

Elsewhere, the Swedish krona performed well yesterday following the central bank’s decision to cut interest rate by 0.25% which was widely anticipated; but, implicated it would not be looking to cut interest rates in 2013. The Japanese yen suffered yesterday as investors sold off positions in traditional safe haven currencies and sought riskier assets. The Reserve Bank of Australia’s monetary policy minutes revealed that it was not a clear cut decision to cut interest rates indicating that there should not be another rate cut in the short term.  Current account figures were announced from New Zealand overnight, as was Trade balance data from Japan. Today we will see whole sales data released from Canada whilst in the evening we will have GDP data from New Zealand.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Posted December 18th, 2012 by Charles Purdy

Smart Daily Currency Note | Inflation data released today, how will it affect sterling?

GBP/EUR – 1.2303
GBP/USD – 1.6197
EUR/GBP – 0.8126
EUR/USD – 1.3156
GBP/AED – 5.9448
GBP/AUD – 1.5382
GBP/CAD – 1.5938
GBP/CHF – 1.4872
GBP/HKD – 12.5561
GBP/HUF – 357.30
GBP/INR – 88.74
GBP/JPY – 135.98
GBP/NZD – 1.9230
GBP/SEK – 10.7781
GBP/ZAR – 13.8591

Sterling

In a day that was quiet on data from the UK, sterling climbed gently against most of its major pairs reaching a two month high of 1.62 against the US dollar. Against the euro it stayed very close to 1.23 for most of the day. Today, however, is likely to see a great deal more volatility. Significant inflation data is released this morning; last month saw targets overshot by almost half a percent, and sterling reacted favourably, bucking an otherwise downward trend. With instability reigning elsewhere, positive sentiment may paint sterling as a safe haven. Traders will also be looking forward with anticipation to tomorrow’s release of the minutes from this month’s monetary policy meeting as some expect that the panel may, for the first time in well over a year, have been split on the best monetary policy. Get in touch now for the most up to date pricing.

Euro

The euro had a mixed day yesterday reaching a seven month high of 1.3185 against the US dollar as the President of the European Central Bank remained positive about the future of the Eurozone and a member of the ECB said he does not see the need to cut interest rates. Rumours also circulated that Greece had received the €4.3 billion tranche of its bailout fund booting confidence for the region.  With very little data out of Europe today the markets will look elsewhere for influence. Call in now for the latest news and rates.

US Dollar

The US dollar struggled yesterday as traders remain cautious about the looming fiscal-cliff situation. Rumours started to circulate that the Republicans and Democrats were approaching some form of an agreement; but, alas no deal has been made to-date. Manufacturing data from New York came in much worse than expected showing a sharp drop in activity in December. Today we will see the release of Current Account data which is directly linked to currency demand and the forecasted conditions on future Housing Market Index that is currently expected to bring a negative outlook. Call in to see how this will affect the dollar and get a live price from our traders.

Worldwide

Elsewhere, the biggest mover yesterday was once more the Japanese yen, losing significant ground against all major peers on the news that new Prime Minister Shinzo Abe is likely to dramatically expand the country’s monetary stimulus. Speculation that Abe will undertake unlimited easing to revive economic growth saw the currency fall to the lowest level since April 2011 versus the US dollar, and at one point dropping below 136 versus sterling. The Hungarian forint also struggled, losing ground across the board on speculation that the central bank may change its policy on holding two-week deposits. Overnight saw the release of New Zealand business confidence, along with Australian monetary policy meeting minutes. Call in now to see how this has affected the currencies and to get a live rate.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Posted December 17th, 2012 by Charles Purdy

Smart Daily Currency Note | No change, euro still on top

GBP/EUR – 1.2298
GBP/USD – 1.6179
EUR/GBP – 0.8129
EUR/USD – 1.3152
GBP/AED – 5.9436
GBP/AUD – 1.5362
GBP/CAD – 1.5965
GBP/CHF – 1.4861
GBP/HKD – 12.5432
GBP/HUF – 349.62
GBP/INR – 88.51
GBP/JPY – 135.89
GBP/NZD – 1.9178
GBP/SEK – 10.7812
GBP/ZAR – 13.9426

Sterling

Sterling continued to have a split personality on Friday, managing to advance against several of its major trading peers, while losing ground against others. The release of strong German Services PMI data helped contribute to sterling losing further ground against its European partner, falling below 1.23 again. It was better news versus the US dollar, with sterling managing to continue its weekly gain against its American counterpart. There was very little data out of the UK at the end of the week to influence the currency. Expect more influence on the markets this week as Consumer Price Index (CPI) inflation data is released; expected to remain slightly above the Bank of England’s 2% target. Thursday will also see the release of Core Retail Sales data which will give a good indication into the current level of consumer activity and economic health in the economy in this very important time before Christmas. Call in now to see how this will affect sterling and to get a live price.

Euro

The euro performed well on Friday reaching a three month high of 1.3170 against the US dollar and pushing below the 1.23 mark against sterling due to the central bank intervention in the US and the European politicians agreeing on a framework for a single supervisory bank for the 27 member community. With thin trading volumes this week we can anticipate volatile pricing as market reaction is exaggerated to any bit of news. The key data release comes on Wednesday as an influential German survey on business climate is released, a strong indicator of economic health that was positive for the first month in six in November – more good news could see the euro continue to strengthen. Traders will have a keen eye on affairs on the other side of the water as the Americans look to avoid the fiscal cliff — good news will be positive news for the euro as risk appetite returns. The euro certainly seems to have a following wind supporting it at the moment. Check in now for the latest news and pricing.

US Dollar

The US dollar continued to weaken across the board on Friday following last week’s announcement from the Federal Bank to inject more money into the economy and alongside the on-going Fiscal Cliff situation that is without resolution. Poor inflation data released on Friday showed that the Core (CPI) data had declined by more than forecast. This was after a US inflation report showed prices fell in November for the first time in six months, boosting expectations the Federal Reserve will stay on its “operation twist” monetary policy path. Today we have a quiet day on data coming out in the US; but, this week all eyes will be on Obama’s plan to tackle the Fiscal Cliff, especially following frustration and concerns from little progress being made last week. Building permits and existing home sales figures will also be released as well as the Philly Fed Manufacturing Index and Core Durable Goods Orders. Call in now for the latest news and live rates.

Worldwide

Elsewhere, on Friday the yen strengthened from an almost nine-month low against the dollar ahead of the elections on Sunday in anticipation of a change of power. The Swedish krona weakened against most of its major counterparts after its Finance Minister said unemployment was likely to keep increasing. Strong Chinese manufacturing data lead to gains for the commodity backed currencies. In South Africa markets will be nervous and volatile ahead of the 5 yearly national congress for it’s ruling party – which some see as losing its grip. We are likely to see further volatility for the Australian and New Zealand dollar with quarterly Current Account and GDP data released early in the week. Call in today to speak to your trader.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Posted December 14th, 2012 by Charles Purdy

Smart Currency Rates and Comments 14th December 2012 – The euro finishes the week on a high

This week                 (Last week)
GBP/EUR – 1.2303      (GBP/EUR – 1.2397)
GBP/USD – 1.6128      (GBP/USD – 1.6042)
EUR/GBP – 0.8126      (EUR/GBP – 0.8063)
EUR/USD – 1.3104       (EUR/USD – 1.2934)
GBP/AED – 5.9241     (GBP/AED – 5.8902)
GBP/AUD – 1.5284     (GBP/AUD – 1.5312)
GBP/CAD – 1.5864       (GBP/CAD – 1.5906)
GBP/CHF – 1.4871       (GBP/CHF – 1.4992)
GBP/HKD – 12.5032    (GBP/HKD – 12.4360)
GBP/INR – 87.64         (GBP/INR – 87.22)
GBP/JPY – 134.98       (GBP/JPY – 132.16)
GBP/NZD – 1.9082       (GBP/NZD – 1.9283)
GBP/SEK – 10.7218      (GBP/SEK – 10.6777)
GBP/ZAR – 13.9372       (GBP/ZAR – 13.9424)

Sterling

A difficult week for sterling as it weakened off against the euro and the higher yielding currencies. It did strengthen against the US dollar and Japanese yen as risk appetite was a key driver in the market. A raft of better than expected employment data did help support sterling. Data released showed that full-time hiring had reached a one and a half year high, unemployment benefit claimants actually fell by 3,000 in the last 3 months when a 5,900 increase had been anticipated and the overall unemployment rate stayed at 7.8% when a marginal increase had been expected. Sterling struggled yesterday however, as a report showed the majority of U.K. manufacturers are seeing a decline in orders. This in conjunction with the fear that the Bank of England will resume quantitative easing and the news that Standard and Poor’s (one of the big three credit rating agencies) had put a negative outlook on the UK’s AAA credit rating pushed sterling weaker against the majority of its major peers. With very little data out today, we don’t anticipate much volatility, but we are in the run up to Christmas where trading volumes are low and rates can change quickly so get in touch for up to the second pricing.

Euro

The euro performed well this week reaching  1.31 against the US dollar following German economic sentiment data coming out better than expected and news of monetary easing in the US. Positive results from a Spanish and Italian bond auction also helped support the euro as did news that Greece has finally had the next tranche of its bailout fund approved. At the Economic Union where ministers sought for deeper economic and monetary integration, yesterday a decision was made to appoint a common banking supervisor. The most influential data released today will be the Manufacturing and Services Purchase Manager Index (PMI) figures across Europe. Should these come in lower than forecast, expect the euro to lose some of its gains this week and slide against its major trading partners. Call in now to see how this has affected the market, and to get a live price.

US Dollar

It has been a broadly poor week for the dollar as the fast approaching Fiscal Cliff has weighed heavily in the minds of traders. A resolution must be reached by the end of next week as the Christmas period interrupts proceedings after that. The Federal Reserve (the American equivalent of the Bank of England) announcement of an increase in asset purchasing by $45 billion a month, a third round of quantitative easing, also hit prices in the middle of the week. Today the most influential data release is on inflation, and as trading volumes decrease in the run up to the break, expect increased volatility in pricing. Get in touch now for the most up to date rates.

Worldwide

Elsewhere it was a difficult week for the Japanese yen, consistently losing ground versus its major trading peers as expectations of a loosening of monetary policy dampened demand for the currency; seeing it fall to 19 and 9-month lows versus sterling and the US dollar respectively. One of the surprise movers early in the week was the Swiss franc, losing ground versus the euro as UBS followed Credit Suisse in announcing that they will start charging clients on accounts which hold francs. It was also a difficult week for the South African rand, failing to capitalise on last week’s advances, as news that gold and mining production had fallen significantly across the nation. Other key data out this week saw the Canadian trade balance come out better than expected, helping the currency rise to an eight-week high versus its US partner. Today sees very little data released so call in now to get a live price.

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Posted December 13th, 2012 by Charles Purdy

Smart Currency Rates and Comments 13th December 2012 – The Euro in the ascendancy again

GBP/EUR – 1.2328
GBP/USD – 1.6128
EUR/GBP – 0.8110
EUR/USD – 1.3078
GBP/AED – 5.9216
GBP/AUD – 1.5282
GBP/CAD – 1.5867
GBP/CHF – 1.4942
GBP/HKD – 12.5028
GBP/HUF – 348.84
GBP/INR – 87.52
GBP/JPY – 134.64
GBP/NZD – 1.9093
GBP/SEK – 10.7355
GBP/ZAR – 13.9324

Sterling

Markets seem to have forgotten about the threat of interest rate cuts in the euro zone as the euro had a good day. Sterling on the other hand had a mixed day yesterday, losing half a cent against the euro whilst reaching a 6 week high of 1.6170 against the US dollar on the back of the news that the US central bank had increased monetary easing. Sterling started the day in the ascendancy following much better than expected employment data. Figures released showed that the number of people claiming unemployment benefits actually fell by 3,000 in the last 3 months when a 5,900 increase had been anticipated. Furthermore, the overall unemployment rate stayed at 7.8% when a marginal increase had been expected. There is very little data out of the UK today bar data showing the expected order volumes from manufacturers over the next 3 months. Get in touch now for the most up to date news and rate.

Euro

The euro performed well yesterday, strengthening against the vast majority of currencies and reaching  1.31 against the US dollar in the evening after the Federal Reserve ramped up stimulus as expected. The euro was also buoyed by a relatively successful Italian bond auction, with yield on 1 year bills reaching their lowest level for 9 months. Today investors focus will be turned to EU Economic Summit as they will discuss plans for deeper economic and monetary integration. Call in now to see how this might affect the market, and to get a live price.

US Dollar

The US dollar fell against all its major counterparts bar the Japanese yen yesterday ahead of the Federal Reserve announcement that it had extended its monetary stimulus measures, and fell even more quickly  following the announcement.  The announcement also included the news that interest rates will be held at these low levels until the unemployment rate falls to 6.5% which is likely to continue to weaken the dollar. This is the third major round of quantitative easing in the US, so the markets are hardly shocked by the move – some analysts predict that the shift will be short lived, but the fiscal cliff still looms over affairs. Today a swathe of data is released around lunch time which could turn the tide. After poor results last month, a swing to the positive for Retail sales and inflation data could be especially influential. Get in touch now for the most up to date pricing.

Worldwide

Elsewhere, one of the biggest mover of the day was Japanese yen, continuing to lose ground against its major trading peers. Ever increasing speculation that any shift in the country’s political make-up will lead to increased levels of quantitative easing saw the yen fall to a 19-month low of 134 versus sterling. It was a different story for the Australian dollar, as news that the US central bank will embark on a further round of monetary easing helped increase demand for the higher-yielding currencies. This news also buoyed the Canadian dollar, helping it rise to an eight-week high versus its US counterpart. Today’s major data focuses on the Swiss franc, with the release of the latest Libor rate, followed by a monetary policy assessment and press conference from the Swiss National Bank. Call in now to see how this has influenced the markets and to get a live rate.

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