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Posted October 17th, 2012 by Charles Purdy

Smart Daily Currency Note – 17th October 2012 – Euro strengthens against most currencies

GBP/EUR – 1.2306
GBP/USD – 1.6132
EUR/GBP – 0.8120
EUR/USD – 1.3102
GBP/AED – 5.9232
GBP/AUD – 1.5641
GBP/CAD – 1.5906
GBP/CHF – 1.4894
GBP/HKD – 12.4981
GBP/INR – 85.08
GBP/JPY – 127.02
GBP/NZD – 1.9732
GBP/SEK – 10.6321
GBP/ZAR – 13.9812

 

Sterling

Sterling had a mixed day yesterday and is clearly under pressure against the euro falling to 1.231 this morning. We have seen over the course of the last couple of months sterling lose over five cents against the euro and we are now at a level where we could see sterling weaken to 1.20 fairly quickly. Sterling performed relatively well against the US dollar as risk appetite drove the market. Inflation data out of the UK came out as widely anticipated posting a figure of 2.2% which is the lowest level for almost 3 years which put pressure on sterling’s relative strength. The latest meeting minutes from Monetary Policy Committee (MPC) will be released today and are expected to show that all 9 members voted to keep interest rates and quantitative easing on hold. Labour data will also be released today and will reveal the change in the number of people claiming unemployment benefits during the past month and the overall unemployment rate in the UK and often instigates price action as it is a clear indicator of economic strength, so please call in now for the latest news and rates.

Euro

The euro strengthened against the majority of currencies yesterday due to an increase in risk appetite within the market, rising above 1.30 against the US dollar for the first time in a week, whilst pushing close to a four month high against sterling. This shift in the markets attitude to risk was thanks mainly to the combination of improved German economic sentiment and increased speculation of a Spanish bailout. There is very little official data out of Europe today; but, expect the markets to be tentative in advance of Thursday’s EU Economic Summit, where much attention will be given to the increasingly likely Spanish Bailout, so call in now for the latest news and changes in the euro rate.

US Dollar

The US dollar fell against most of the other major currencies yesterday as US industrial production rose by more than forecast last month and due to a general increase in risk appetite across the market. In addition, US consumer inflation increased 0.6% in September; whilst the core reading (which excludes food and energy prices) increased by 0.1% for a third month in a row. Out today we have housing data released in the form of the number of new houses that have started to be built in the last month and the number of new building permits that have been issued in the last month. Please call in now for the latest news and a live update.

Worldwide

Elsewhere, the Japanese yen struggled against its major counterparts as risk appetite became the main driver in the market. The New Zealand dollar fell against all major rivals as data released overnight showed inflation was at its weakest pace in 12 years. The Canadian dollar also struggled despite an unexpected increase in manufacturing sales due to the Governor Bank of Canada hinting that he may look to lower Canada’s growth forecast. Swiss economic expectations figures will be the main release today on what is otherwise a quiet day on the data front. Call in now for the latest news and a live quote.

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Posted October 16th, 2012 by Charles Purdy

Smart Daily Currency Note – 16th October 2012 – Little fluctuation in major currencies at the start of the week

GBP/EUR – 1.2385
GBP/USD – 1.6082
EUR/GBP – 0.8068
EUR/USD – 1.2982
GBP/AED – 5.8951
GBP/AUD – 1.5642
GBP/CAD – 1.5781
GBP/CHF – 1.4964
GBP/HKD – 12.4631
GBP/INR – 84.94
GBP/JPY – 126.86
GBP/NZD – 1.9661
GBP/SEK – 10.6712
GBP/ZAR – 14.0932

 

Sterling

Sterling traded fairly flat yesterday with little data out of the UK to inspire dramatic price action. Housing data released showed that house prices had increased by 3.5% in October; but, this had little effect on sterling’s relative strength. Important inflation data is released today and the Consumer Price Index (CPI) reading is forecast at a 2.2% change from this time last year. Any variance from this figure and we could see sterling on the move, so please call in now for the latest news and rates.

Euro

The euro traded in a similar pattern to sterling yesterday and stayed fairly range bound against most of the major currencies. Greece’s benchmark 10-year bond yields fell to 17.34% which is the lowest they have been since requesting a bailout. Confidence appears to be slowly returning to investors in part due to the now fully operational €500 billion support fund knows the European Stability Mechanism (ESM).  Out today, the German economic sentiment figures will take much of the focus and current expectations point to a slight improvement. Inflation data will also be released today and is expected to remain consistent with last month’s figures; but, much attention will be on EU summit later in the week, so call in now for the latest news and changes in the euro rate.

US Dollar

The US dollar stayed fairly range bound yesterday despite the US retail sales increasing by 1.1% in September, beating all expectations. Data has been fairly positive for the US recently and investors will hope this trend continues as trader’s attitude to risk is greatly influenced by the state of the world’s largest economy. Inflation figures are released today and are expected to show a marginal improvement. Please call in now for the latest news and a live update.

Worldwide

Elsewhere, the South African rand continued to fall yesterday following Standard & Poor’s (one of the big three credit rating agencies) cutting their credit rating. The Japanese yen also lost ground yesterday following the positive retail data emerging from the US and as investors speculate about potential central bank intervention. The Australian dollar and New Zealand dollar remain relatively low following earlier declines, with the New Zealand dollar actually touching a month low as data from their services industry was worse than expected. Overnight we saw inflation data from New Zealand released as well as the minutes from the latest monetary policy in Australia. Call in now for the latest news and a live quote.

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 October 15th, 2012 by Charles Purdy

Smart Daily Currency Note – 15th October 2012 – Major currencies remained flat at the end of trading on Friday

GBP/EUR – 1.2405
GBP/USD – 1.6024
EUR/GBP – 0.8063
EUR/USD – 1.2914
GBP/AED – 5.8838
GBP/AUD – 1.5672
GBP/CAD – 1.5708
GBP/CHF – 1.5002
GBP/HKD – 12.4271
GBP/INR – 85.06
GBP/JPY – 125.92
GBP/NZD – 1.9678
GBP/SEK – 10.7412
GBP/ZAR – 14.0321

 

Sterling

Sterling traded particularly flat against the majority of currencies on Friday due to a lack of any significant data being released.  It is a big week ahead for sterling and the UK in general, with a vast amount of data being released including inflation data which is forecast to be 2.3% , Public Sector Net Borrowing figures, data showing the number of people claiming unemployment benefits during the past month and retail sales figures. In addition the Monetary Policy Committee (MPC) latest meeting minutes will be released and are expected to show that all 9 members voted to keep interest rates and quantitative easing on hold for the time being. Any variation in voting would cause a lot of volatility and with so much going on in Europe and in Spain in particular the potential for rapid market movements remains high. So please call in for a price and to discuss matters in detail with your trader.

Euro

The euro stayed relatively range bound on Friday; but improved marginally against the US dollar with news that Spain is increasingly likely to formally request a bailout.  German economic sentiment coming out on Tuesday is forecast to show a slight improvement which could in turn strengthen the euro. Other data out this week includes inflation data and current account figures which are expected to show a small increase. The EU economic summit starts on Thursday and any news leaked from these meetings regarding Greece or Spain could cause volatility in the markets. It also means that the benchmark 10-year Spanish bond auction on Thursday will have even more attention drawn to it than normal, so call in now for the latest news and changes in the euro rate.

US Dollar

The US dollar stayed fairly range bound on Friday against the other major currencies despite data revealing that consumer confidence has risen to its highest level since before the global financial crisis. It is a full week for economic data in the US headlined by retail sales data, inflation figures and manufacturing data. There will also be housing data released alongside figures showing the change in number of new people claiming unemployment benefits which will be watched closely after last week’s reading showed a drop in unemployment to a 4 year low. Please call in now for the latest news and a live update.

Worldwide

Elsewhere, the South African rand was extremely weak again on Friday as Standard & Poor’s (one of the big three credit rating agencies) downgraded the country’s sovereign debt ratings to a 3.5 year low against the US dollar. GDP figures and inflation data announced from China this week will go some way to outline the state of the world second biggest economy. More inflation data will be released from New Zealand and Canada whilst the minutes from the latest monetary policy in Australia will also be announced. Call in now for the latest news and a live quote.

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Posted October 12th, 2012 by Charles Purdy

Smart Daily Currency Note – 12th October 2012 – Worries for Spanish economy weakens major currencies

This week                 (Last week)
GBP/EUR – 1.2394      (GBP/EUR – 1.2438 )
GBP/USD – 1.6032      (GBP/USD – 1.6182 )
EUR/GBP – 0.8077      (EUR/GBP – 0.8043 )
EUR/USD – 1.2936       (EUR/USD – 1.3002 )
GBP/AED – 5.8886       (GBP/AED – 5.9391 )
GBP/AUD – 1.5593      (GBP/AUD – 1.5788 )
GBP/CAD – 1.5682       (GBP/CAD – 1.5871 )
GBP/CHF – 1.4983       (GBP/CHF – 1.5078 )
GBP/HKD – 12.4323     (GBP/HKD – 12.5468 )
GBP/INR – 84.37        (GBP/INR – 83.61 )
GBP/NZD – 1.9561       (GBP/NZD – 1.9632 )
GBP/SEK – 10.7431      (GBP/SEK – 10.7064 )
GBP/ZAR – 13.8331       (GBP/ZAR – 13.8374 )
GBP/JPY – 125.79       (GBP/JPY – 126.82 )

Sterling
Sterling has had a mixed week as more bad news came from the manufacturing sector with data showing that production had fallen by 1.2%. On a more positive note, the National Institute of Economic and Social Research (NIESR) said that in the third quarter the UK had grown by 0.8%, the strongest growth for 2 years; however, the International Monetary Fund (IMF) forecasts suggest that the UK’s economy will shrink by 0.4% in 2012. Following yesterday’s G7 meeting, the International Monetary Fund (IMF) now meets for 2 days and any leaked news from these meetings could cause volatility in the market, so please call in now for the latest news and rates.

Euro
The euro struggled in the early part of the week as the markets became nervous that Spain would continue to delay making a request for a full government bailout; furthermore, the President of the European Central Bank (ECB) mirrored comments by the IMF suggesting that growth in Europe would be extremely sluggish. Yesterday however, rumours that there could be an imminent request for a full Spanish bailout grew due to the extra pressure put on the nation by Standard & Poor’s (one of the big three credit rating agencies) who cut Spain’s credit rating. Data showing the monthly volume change of output in the manufacturing sector will be released today; but, news regarding Spain will have a much bigger impact on the euro’s relative strength, so call in now for the latest news and changes in the euro rate.

US Dollar

The US dollar performed fairly well in the early part of the week as investors sought safer havens for their money in a risk adverse market; however, as rumours regarding a potential Spanish bailout developed the US dollar weakened off against most of its major peers. Data released yesterday showed that the number of new people claiming unemployment benefits had dropped to a 4 year low. This indicates that the labour market in the world’s biggest economy appears to be recovering and in turn sparked increased risk appetite in the market. It is another full economic agenda in the US today with inflation data, consumer sentiment figure and the Federal budget balance. Please call in now for the latest news and a live update.

Worldwide
Elsewhere, the South African rand had a turbulent week being one of the worst performers on Monday as more industrial action took place; but then staged a strong recovery as unions brought an end to their strikes. In a similar pattern to the US dollar, the Japanese yen (another safe haven) performed well in the first couple of days this week; but, then struggled as risk appetite began to drive the market. The Polish zloty struggled as rumours spread that its central bank may look to cut interest rates in the near future. Call in now for the latest news and a live quote.

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 October 11th, 2012 by Charles Purdy

Smart Daily Currency Note – 11th October 2012 – The US Dollar starts to weaken after a strong few days

GBP/EUR – 1.2446
GBP/USD – 1.5998
EUR/GBP – 0.8038
EUR/USD – 1.2848
GBP/AED – 5.8732
GBP/AUD – 1.5585
GBP/CAD – 1.5694
GBP/CHF – 1.5042
GBP/HKD – 12.4057
GBP/INR – 84.89
GBP/JPY – 124.82
GBP/NZD – 1.9585
GBP/SEK – 10.7188
GBP/ZAR – 13.9055

Sterling
Sterling remained range bound against the majority of currencies yesterday as the markets were steady in the absence of any significant news released globally. There is very little data out of the UK today; but, investors will be watching closely the G7 meeting that has been taking place in the early hours of this morning over in Japan where the powers that be are meeting to discuss the slowing global economy. Please call in now for the latest news and rates.

Euro
The euro performed slightly better than sterling yesterday; but remained similarly range bound as the whole global foreign exchange market lacked direction. On the data front, the monthly changes in industrial production for France and Italy were much better than expected both showing sharp increases in volume when drops had been anticipated. Out today we have inflation data from both Germany and France; but, the European Central Bank’s (ECB) monthly bulletin will be the most important release as it outlines the central bank’s current and future view on the state of the Eurozone economy, so call in now for the latest news and changes in the euro rate.

US Dollar

The US dollar underperformed yesterday after a strong start to the week; but, its losses were limited as only the Turkish lira and South African rand made significant gains against it. The Beige Book report last night was the most significant release as it comments on the state of the local economies from all 12 Federal Reserve Banks. After a quiet few days in the US, we have a busy economic agenda today headlined by trade balance data and unemployment claims figures. Please call in now for the latest news and a live update.

Worldwide
Elsewhere, the South African rand continued to recover its losses over the past 10 days as strikes come to a close and employees return to work. The Turkish lira also performed well as Fitch (one of the big three credit rating agencies) suggested Turkey may be upgraded as it takes a strong action over its deficit levels. The Polish zloty was one of the worst performing currencies yesterday as rumours started to spread that its central bank may look to cut interest rates in the near term. Overnight, we had employment related data released in Australia, consumer confidence figures from Japan and later on today the main release will be the trade balance data from Canada. Call in now for the latest news and a live quote.

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 October 10th, 2012 by Charles Purdy

Smart Daily Currency Note – 10th October 2012 – Euro amongst worst performers at end of trading

GBP/EUR – 1.2429
GBP/USD – 1.5982
EUR/GBP – 0.8048
EUR/USD – 1.2851
GBP/AED – 5.8712
GBP/AUD – 1.5642
GBP/CAD – 1.5651
GBP/CHF – 1.5049
GBP/HKD – 12.3962
GBP/INR – 84.78
GBP/JPY – 125.12
GBP/NZD – 1.9588
GBP/SEK – 10.7251
GBP/ZAR – 13.9534

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form

Sterling has a mixed day yesterday, struggling against the safe haven currencies but performing fairly well elsewhere including nearly a one cent gain against the euro. The manufacturing industry took another blow as data released showed that production had fallen by 1.2%, a much bigger drop than the 0.7% fall that had been predicted. More negativity came as trade balance data released showed that the trade gap had widened by more than expected. On a more positive note, the National Institute of Economic and Social Research (NIESR) said that in the third quarter the UK had grown by 0.8% and suggested it would continue to grow but at a slower pace; however, this opinion differs from the International Monetary Fund (IMF) growth forecasts for the UK who now say the economy will shrink by 0.4% in 2012. There is very little data out of the UK today; but, with so much to digest over the last couple of days and the G7 meetings on Thursday the markets are expected to be on edge, so please call in now for the latest news and rates.

The euro was one of the worst performers yesterday as the President of the European Central Bank mirrored comments by the IMF suggesting that growth in Europe would be extremely sluggish. The German Chancellor also piled pressure on the Greek Prime Minister to meet the austerity measures it must adhere to for it to receive the next tranche of its bailout fund. It is a fairly quiet day in Europe today with the two main releases being the monthly change in industrial production for France and Italy, so call in now for the latest news and changes in the euro rate.

The US dollar was one of the best performing currencies yesterday, strengthening against most of its major counterparts except the Japanese yen which is another safe haven currency. Another relatively quiet day in the US with the exception of a benchmark 10-year bond auction and the Beige Book release which will reveal the state of the local economies from all 12 Federal Reserve Banks. Please call in now for the latest news and a live update.

Elsewhere, the South African rand was the best performing currency yesterday after some unions brought an end to their strikes. The Japanese yen also performed well as a safe haven currency. Overnight we had the release of consumer sentiment figures from Australia and early this morning the President of the Swiss National Bank was speaking and his words are always closely analysed by investors. Call in now for the latest news and a live quote.

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 October 9th, 2012 by Charles Purdy

Smart Daily Currency Note – 9th October 2012 – Sterling continues to be under pressure

GBP/EUR – 1.2352
GBP/USD – 1.6039
EUR/GBP – 0.8098
EUR/USD – 1.2975
GBP/AED – 5.8878
GBP/AUD – 1.5704
GBP/CAD – 1.5652
GBP/CHF – 1.4987
GBP/HKD – 12.4352
GBP/INR – 84.04
GBP/JPY – 125.67
GBP/NZD – 1.9527
GBP/SEK – 10.6227
GBP/ZAR – 14.2096

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form

Sterling continues to be under pressure and was one of the worst performing currencies yesterday dropping to 1.2350 against the euro and 1.6025 against the US dollar as the focus remained on developments in Europe. The main release today will be data showing the monthly change in the total value of output produced by manufacturers and investors will be hoping for some good news after the raft of poor manufacturing data that we have seen released recently. Other data released includes trade balance figures and as sterling continues to struggle investors wait to see if the seven day negative trend against the euro will continue, so please call in now for the latest news and rates.

The euro had a mixed day as finance ministers at the Eurogroup meetings announced that the €500 billion support fund knows as the European Stability Mechanism (ESM) was now fully operational providing some much needed security to the Eurozone. The markets however, are starting to worry as Spain continues to delay requesting for a full government bailout. Data released showed that German industrial production had declined; but, by slightly less than initially anticipated. There are more meetings in Europe today and the President of the ECB is also speaking meaning the potential for significant movements in exchange rates remains high, so call in now for the latest news and changes in the euro rate.

The US dollar traded on the side-lines yesterday due to the Columbus Day bank holiday; but, performed fairly well as the markets remain nervous due to the lack of a formal Spanish bailout request. It is a another quiet day in the US today; but with more meetings in Europe today there could still be a lot of price action due to shifts in global risk sentiment. Please call in now for the latest news and a live update.

Elsewhere, the South African rand continues to perform poorly as more industrial action took place, whilst the Japanese yen performed well as a safe haven currency. Overnight, business confidence figures from New Zealand were released alongside a raft of Japanese data including current account figures, economic sentiment and the Governor of the Bank of Japan was also speaking. Call in now for the latest news and a live quote.

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 October 8th, 2012 by Charles Purdy

Daily Currency Note 8th October 2012

GBP/EUR – 1.2388
GBP/USD – 1.6089
EUR/GBP – 0.8073
EUR/USD – 1.2984
GBP/AED – 5.9087
GBP/AUD – 1.5823
GBP/CAD – 1.5736
GBP/CHF – 1.5024
GBP/HKD – 12.4771
GBP/INR – 83.74
GBP/JPY – 126.42
GBP/NZD – 1.9701
GBP/SEK – 10.6571
GBP/ZAR – 14.1106

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form

Sterling had a poor day on Friday despite a lack of data being released in the UK, weakening against the euro to a two week low of 1.2380 whilst also weakening against the US dollar. One of the main releases this week will be figures showing the monthly change in the total value of output produced by manufacturers. This will be closely watched by investors due to the string of poor manufacturing data that we have seen released recently. Other data released this week includes trade balance figures, whilst there are G7 meetings and meetings between European officials which will all play a role in sterling’s relative strength. It is a busy week here and elsewhere in the world for economic data, so please call in now for the latest news and rates.

The euro performed well due to an increase in global risk appetite due to positive employment data being released in the US and following news the from the ECB saying they were ready to start buying government bonds should Spain make a formal request. The euro reached a two week high against both sterling and the US dollar. On the data front, final GDP data came out as expected at -0.2% and German factory orders came in lower than expected. This week there is a number of meetings taking place between European officials and Spain and Greece will be two of the main topics for conversation, any news leaked from these meetings can cause volatility and has done in the past, so call in now for the latest news and changes in the euro rate.

The US dollar was particularly weak on Friday as risk appetite continued to drive the market as yet more positive data was released from the US in the form of the highly influential non-farm payrolls data alongside the news that the unemployment rate had dropped below 8% for the first time in nearly 4 years. It is a bank holiday in the US today; but, later on this week there is quite a lot data released which includes consumer sentiment figures, inflation data and trade balance data. Please call in now for the latest news and a live update.

Elsewhere, the Japanese yen was weakened on Friday due to the increased risk appetite in the market and following the news that the Bank of Japan had voted to keep interest rates on hold on Friday morning. This was as expected and at the conference that followed, the Bank of Japan suggested that it would continue to loosen monetary policy to encourage growth. The Canadian dollar performed well as better than expected employment data and building permits figures were released. It is a busy week for data with a full economic calendar including New Zealand business confidence figures, Japanese current account data and Australian unemployment statistics. The President of the Swiss National Bank is speaking this week, Swiss inflation data will be announced and we also have the release of trade balance data from Canada. Call in now for the latest news and a live quote.

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 October 5th, 2012 by Charles Purdy

Daily Currency Note 5th October 2012

This week (Last week)
GBP/EUR – 1.2438 (GBP/EUR – 1.2572)
GBP/USD – 1.6182 (GBP/USD – 1.6250)
EUR/GBP – 0.8043 (EUR/GBP – 0.7953)
EUR/USD – 1.3002 (EUR/USD – 1.2926)
GBP/AED – 5.9391 (GBP/AED – 5.9719)
GBP/AUD – 1.5788 (GBP/AUD – 1.5539)
GBP/CAD – 1.5871 (GBP/CAD – 1.5907)
GBP/CHF – 1.5078 (GBP/CHF – 1.5217)
GBP/HKD – 12.5468 (GBP/HKD – 12.5998)
GBP/INR – 83.61 (GBP/INR – 85.68)
GBP/JPY – 126.82 (GBP/JPY – 125.95)
GBP/NZD – 1.9632 (GBP/NZD – 1.9488)
GBP/SEK – 10.7064 (GBP/SEK – 10.6088)
GBP/ZAR – 13.8374 (GBP/ZAR – 13.3958)

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form

Sterling struggled for most of this week due to a raft of poor data being released. Services, manufacturing and construction Purchasers Managers Index (PMI) figures all came out lower than expected with both the manufacturing and construction industries contracting which clearly underlines the weakness in the UK’s economy at present. In other news, the Bank of England kept interest rates and quantitative easing on hold as was widely expected. There is very little data out of the UK today and the focus will be split between markets expectations from Spain and the monthly jobs report released in the US. The potential for a lot of volatility remains so please call in now for the latest news and rates.

The euro had a strong week pushing through the 1.30 level against the US dollar and strengthening to 1.242 against sterling as the markets continue to speculate that a full Spanish sovereign bailout is imminent. The ECB’s decision to keep interest rates on hold at 0.75% was also viewed positively and the comments from the president of the ECB stating that the euro was “irreversible” and that the central bank was ready to start buying bonds pushed the euro higher still. On a more negative tone, the unemployment rate in Europe has risen to a record high of 11.4%. The euro continues to remain strong in anticipation of a Spanish bailout request; but, if the Spanish government continues to delay the request you can expect the markets to get very nervous and in turn a significant increase in volatility, so call in now for the latest news and changes in the euro rate.

The US dollar had a mixed week as global risk sentiment shifted between risk appetite and risk aversion. There was a raft of better than expected data out of the US which included an unexpectedly positive manufacturing and non-manufacturing PMI data release and the change in the level of the number of people employed in the last month also increased by more than economists predicted. The Federal Open Market Committee (FOMC) meeting minutes were released yesterday evening and will be closely analysed by investors following last month’s decision to implement a third round of quantitative easing. Non-farm payrolls data released will be the most significant data announced globally today as investors hope for signs that the world’s biggest economy is recovering. Please call in now for the latest news and a live update

Elsewhere, the Australian dollar performed poorly this week following the decision by the Reserve Bank of Australia’s to cut interest rates by 0.25%, as well as trade balance figures and retail sales data both missing market estimates. The South African rand also struggled due to the on-going unrest caused by the mining strikes. Overnight we had the Bank of Japan’s rate decision, press conference and monetary policy statement and later on today we have a raft of data released from Canada including employment figures and data showing the change in the value of new building permits issued. Call in now for the latest news and a live quote.

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 October 3rd, 2012 by Charles Purdy

Daily Currency Note 3rd October 2012

GBP/EUR – 1.2492
GBP/USD – 1.6108
EUR/GBP – 0.8006
EUR/USD – 1.2899
GBP/AED – 5.9178
GBP/AUD – 1.5776
GBP/CAN – 1.5896
GBP/CHF – 1.5115
GBP/HKD – 12.4928
GBP/INR – 84.24
GBP/JPY – 126.04
GBP/NZD – 1.9606
GBP/SEK – 10.6971
GBP/ZAR – 13.5868

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form

Sterling had a mixed day yesterday, weakening against the euro and other European currencies due to an increase in global risk appetite. Sterling also struggled following worse than expected construction Purchasers Managers Index (PMI) figures being released which indicated that the construction industry was contracting despite markets predicting a neutral release. More negative data showed that the change in the selling price of homes had unexpectedly dropped by 0.4% when marginal growth had been anticipated. Services PMI figures will be the main release on the agenda today and investors will hope for a better reading than the announcements over the last two days. Current expectations are for marginal expansion; but, this seems somewhat hopeful following the manufacturing and construction figures that have been released, please call in now for the latest rates.

The euro performed well yesterday as the markets continue to predict that a full government Spanish bailout is imminent despite the Spanish Prime Minister categorically saying that it wasn’t. Spanish unemployment has risen by 79,600 from last month prompting investors to think that the Spanish government will have no choice but to request a full government bailout in the near future so as to shore up their economy. Services PMI figures will be released across Europe today whilst Europe wide retail sales figures will also be released on what is otherwise scheduled to be a fairly quiet day epitomised by the bank holiday in Germany, so call in now for the latest news and changes in the euro rate.

Overnight we have seen the US dollar gain ground against sterling and the euro as risk aversion came to the fore. This was after the US dollar had struggled yesterday as investor’s appetite for risk drove the market due to the increased speculation over a Spanish bailout. Non-manufacturing PMI data will be released today and the markets will hope this mirrors the unexpectedly positive manufacturing PMI reading on Monday. Other data released includes the change in the level of employment which should provide some insight into the expected figures for the highly influential Non-farm payrolls data released on Friday. The rapid movement in the US dollar over the last 24 hours highlights how volatile exchange rates are so please call in now for the latest news and a live update.

Elsewhere, the Australian dollar was one of the worst performing currencies yesterday following the Reserve Bank of Australia’s unexpectedly cutting interest rates by 0.25%. This was due to the weakening global economy and an increasingly pessimistic outlook on Australia’s GDP for 2013. Chinese non-manufacturing PMI data and trade balance figures from Australia were released over night; but, very little other data is scheduled to be released. Call in now for the latest news and a live quote.

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