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 December 12th, 2012 by Charles Purdy

Smart Currency Rates and Comments 12th December 2012 – Risk appetite increases which supports the euro

GBP/EUR – 1.2376
GBP/USD – 1.6102
EUR/GBP – 0.8077
EUR/USD – 1.3008
GBP/AED – 5.9162
GBP/AUD – 1.5281
GBP/CAD – 1.5874
GBP/CHF – 1.5002
GBP/HKD – 12.4826
GBP/HUF – 349.67
GBP/INR – 87.34
GBP/JPY – 133.32
GBP/NZD – 1.9162
GBP/SEK – 10.6812
GBP/ZAR – 13.9354

Sterling

Sterling had a mixed day yesterday, weakening off against the euro and the higher yielding currencies and strengthening against the US dollar and Japanese yen as risk appetite drove the market. Unemployment data  will be the main news on the agenda in the UK today, with both the rate of unemployment and figures showing the change in the number of people claiming unemployment benefits being released. Get in touch now for the most up to date news and rate.

Euro

The euro continued to rally yesterday as German economic sentiment data was markedly better than expected pushing to 1.30 against the US dollar. Strong results from a Spanish bond auction also helped support the euro despite hints that the Spanish were not far away from requesting a bailout. Analysts are citing continued monetary easing in the USA as limiting the fallout to recent Spanish and Italian news. With little data out today, the focus will be on a meeting between finance ministers in Brussels, looking ahead to Thursday’s economic summit. Get in touch now for the latest news and rates.

US Dollar

The US dollar struggled across the board yesterday with markets nervous ahead of today’s Federal Open Market Committee (FOMC) decision on interest rates and quantitative easing and with increased optimism surrounding a potential resolution to  the so-called fiscal cliff situation. The trade balance figures came out close to what was expected and therefore didn’t have much impact on the markets, although the data revealed that October’s exports to China had plunged by the most since January 2009. Today we have the second day of the FOMC meeting, economic projections and press conference which follows. This may give some indication of progress on US fiscal talks along with anticipation that the Federal reserve may extend its level of quantitative easing, especially as the so-called "operation twist" policy completes to the end of the year.

Worldwide

Elsewhere, the Swiss franc dropped against the euro yesterday hitting three month lows after UBS said it will follow Credit Suisse’s lead and will start charging clients on accounts which hold Swiss francs. The New Zealand dollar performed relatively well as the Reserve Bank of New Zealand announced it was not looking to cut interest rates. The South African rand weakened for a second day in a row as the nation’s gold and mining production fell versus a year ago. The Polish zloty and Hungarian forint both performed well yesterday due to the general increase in global risk appetite. Overnight, the Governor of the Reserve Bank of Australia was talking; but, very little data is due to be released today. Call in now to get a live quote 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

Leave a Reply

You must be logged in to post a comment.

Posted December 11th, 2012 by Charles Purdy

Smart Currency Rates and Comments 11th December 2012 – A steady day for sterling

GBP/EUR – 1.2414
GBP/USD – 1.6072
EUR/GBP – 0.8052
EUR/USD – 1.2942
GBP/AED – 5.8992
GBP/AUD – 1.5334
GBP/CAD – 1.5856
GBP/CHF – 1.5031
GBP/HKD – 12.4572
GBP/HUF – 351.51
GBP/INR – 87.32
GBP/JPY – 132.41
GBP/NZD – 1.9232
GBP/SEK – 10.7422
GBP/ZAR – 13.9482

Sterling

After the excitement of late last week, sterling traded in a fairly narrow range yesterday. Against the euro it peaked at  1.244 and against the US dollar at 1.609 before giving back some of these gains in the latter part of the day. Data released showed that full-time hiring had reached a one and a half year high in the UK, alleviating concerns that the recent rise in employment was purely down to the temporary work created by the Olympics.  There is very little data out of the UK today bar the benchmark 10-year bond auction which is always a useful guide to gauge how investors currently view the need for safe haven assets. Get in touch now for the most up to date price.

Euro

It was a mixed day for the euro yesterday, declining through the morning following the announcement by Mario Monti, the Italian Prime Minister, that he was to resign after the upcoming 2013 budget vote.  Poor French and Italian Industrial data helped to drag prices down with traders looking to the pound as a safe haven. The tide turned somewhat in the afternoon as the euro strengthened. Today sees German Economic Sentiment data and with Germany as the core of Europe, good results could bring some confidence back to the markets, and continue to strengthen the euro. Get in touch now for a more up to date report and a quote.

US Dollar

The US dollar weakened broadly yesterday despite it being a flat day on data released. This was mainly due to "Fiscal Cliff" fears returning with all eyes are on President Obama’s speech in Detroit who will be promoting his plan to avoid this. His plan features a $1.6 trillion in tax increases and also $600 billion in spending cuts. Furthermore, with the Federal Bank meeting on Thursday for the final time this year, much of the focus will be on whether or not the central bank will start another round of monetary easing.  Today we have the US trade balance figures with unexpected data being sure to cause volatility, so call in now.

Worldwide

Elsewhere, the best performing currency yesterday was the Polish zloty after two central bankers suggested that the Polish central bank would look to cut interest rates next month. The South African rand and Swedish krona both struggled yesterday, with the South African rand particular weak in anticipation of inflation data released later on this week. Chinese trade balance data released yesterday was much worse than expected. The main released today will be trade balance data from Canada; but, not much else is expected to be released. Call in now 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 10th, 2012 by Charles Purdy

Smart Currency Rates and Comments 10th December 2012 – The euro loses it’s glow

GBP/EUR – 1.2412
GBP/USD – 1.6023
EUR/GBP – 0.8054
EUR/USD – 1.2903
GBP/AED – 5.8842
GBP/AUD – 1.5278
GBP/CAD – 1.5824
GBP/CHF – 1.4976
GBP/HKD – 12.4188
GBP/HUF – 351.44
GBP/INR – 87.09
GBP/JPY – 132.95
GBP/NZD – 1.9218
GBP/SEK – 10.7141
GBP/ZAR – 13.8792

Sterling

Sterling continued to lose ground against the US dollar on Friday dropping to 1.60; but, traded in a relatively narrow range against the majority of currencies. Rumours continue to build that the UK will soon lose its gold plated AAA rating; however, a lot of economists are suggesting this is already priced into the market and won’t really affect the UK’s economy due to only 7 countries currently having a “stable outlook”. On the data front, the change in manufacturing production fell sharply by 1.3% when only a 0.2% drop had been anticipated. The Governor of the Bank of England is speaking this week and we will also have the benchmark 10-year bond auction. Unemployment data will be one of the key releases this week and will include figures showing the change in the number of people claiming unemployment benefits. Get in touch now for the most up to date news and rate.

Euro

It was once again a tough day for the euro on Friday, continuing to lose ground against all major peers. Increasing speculation that the European Central Bank may be in support of an interest rate cut if the Eurozone’s economic performance doesn’t show signs of improving decreased demand for the 17-nation currency. News that German industrial production contracted more than expected – total output shrunk by 2.6% – did little to restore confidence, and saw the currency fall to a 2-week low versus the US dollar. This week sees the release of German economic sentiment and Manufacturing Purchase Manager Index (PMI); should these come in lower than forecast, expect the euro to continue its slide against its major trading partners. Eyes will also be on the EU economic summit where heads of state are set to continue discussions over a proposed banking union. Call in now to see how this has affected the market, and to get a live price.

US Dollar

The US dollar strengthened on Friday due to an increase in risk aversion in the global markets following news being released that more members of the ECB are in favour of rate cut in 2013. Furthermore, data released on Friday showed that both the non-farm employment change and unemployment rate in the US came out better than forecast, with employers adding more jobs than forecast last month and the unemployment rate dropping to almost a four year low. We have a quiet day today in terms of data released in the US, but this week we will see the US trade balance as well as the Federal Open Market Committee statement and economic projections. Towards the back end of this week we will also see Core Retail Sales and also Core Consumer Price Index data out. Call in now for the latest news and updates.

Worldwide

Elsewhere, the South African rand registered is highest weekly gain since September on Friday. A gain of 2.3% for the week could have been higher if not for a depreciation against the USD on Friday. The Canadian dollar dropped on Friday following employment data coming out of both the US and Canada. A 7.2% unemployment rate was received positively on the back of an expected 7.4% reading. Overnight we had the release of trade balance data rom China and we have more data out from China later on in the week in the form of Manufacturing PMI. The Governor of the Reserve Bank of Australia will be speaking this week and we will also see the Swiss National Bank (SNB) decision on interest rate. Call in now to get a live quote 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 7th, 2012 by Charles Purdy

Smart Currency Rates and Comments 7th December 2012 – Surprise talk of interest rate cuts for the euro

This week                 (Last week)
GBP/EUR – 1.2397      (GBP/EUR – 1.2328)
GBP/USD – 1.6042      (GBP/USD – 1.6046)
EUR/GBP – 0.8063      (EUR/GBP – 0.8107)
EUR/USD – 1.2934       (EUR/USD – 1.3013)
GBP/AED – 5.8902     (GBP/AED – 5.8930)
GBP/AUD – 1.5312     (GBP/AUD – 1.5387)
GBP/CAD – 1.5906       (GBP/CAD – 1.5927)
GBP/CHF – 1.4992       (GBP/CHF – 1.4852)
GBP/HKD – 12.4360    (GBP/HKD – 12.4328)
GBP/INR – 87.22         (GBP/INR – 87.44)
GBP/JPY – 132.16       (GBP/JPY – 132.51)
GBP/NZD – 1.9283       (GBP/NZD – 1.9515)
GBP/SEK – 10.6777      (GBP/SEK – 10.6725)
GBP/ZAR – 13.9424       (GBP/ZAR – 14.0625)

Sterling

Having struggled last week, sterling remained fairly steady throughout this week and enjoyed a rally against the euro as the European Central Bank (ECB) raised the possibility of interest rate cuts in the Eurozone . A series of UK Purchase Manager Index (PMI) data released earlier in the week drove prices with better than expected manufacturing data being counteracted somewhat by poor construction results. Nervousness ahead of the Office for Budget Responsibility forecasts and the Autumn mini budget weighed on sterling’s relative strength, seeing a drop against the euro to 1.2270 at one stage. However, sterling actually strengthened after the release, despite concerns being raised over the future of the UK’s AAA credit rating. It seems as though most of the downside was already been priced into sterling’s exchange rate. Manufacturing production data showing the change in the total inflation is due to be released later today, with a -0.2% prediction. Call in to find out the latest rates with your trader now.

Euro

Recent optimism over the future of the Eurozone due to the apparent resolution to the Greek debt crisis drove prices to a seven week high early in the week; but this optimism fell away yesterday bringing the euro down with it. At yesterday’s ECB press conference the President was unprecedented in his negativity, not only saying that economic weakness was likely to continue, but also that the central bank had discussed lowering interest rates. This surprise news caused the 17-nation currency to drop half a cent in a few hours. The ECB president is due to speak again today at a conference, in light of yesterday’s surprise news, traders will be listening nervously and it will take a huge amount of positivity to turn yesterday’s move around. Get in touch now for the most up to date price.

US Dollar

Over the week the US dollar had been losing ground against the euro and sterling due to concerning news regarding the “fiscal cliff” in the US, though losses against its key trading partners were pared off as both the euro and the pound lost value yesterday. The main focus in the US continues to be the looming so-called fiscal-cliff. If the disagreement between the Democrats and Republicans continues the markets will start to get very nervous. The US dollar rally yesterday was emphasized by better than expected unemployment data – though many analysts are putting this down to the post Hurricane Sandy effect. More labour data will be released today in the form of the highly influential non-farm pay rolls data. With a mix of positive and negative labour data released over the past couple of days, the markets will look closely at this release for influence. Call in now to discuss what might happen with your trader.

Worldwide

Elsewhere, it was a mixed week for the higher yielding currencies as a play-off between risk aversion and appetite continued to influence demand for typically riskier assets. The Swiss franc was a surprise mover, reaching 1.2140 versus the euro on the news that Credit Suisse will start charging negative interest rates on accounts which hold Swiss francs. The Japanese yen continues to remain volatile versus most major trading peers as speculation that any parliamentary change will lead to an increase in quantitative easing remains rife. The Australian dollar was one of the biggest movers early in the week as a gloomier global economic outlook increased risk aversion. The decision to cut the country’s interest rate to 3% had a fairly muted effect as comments from the bank suggested a further rate cut is highly unlikely. Overnight we also saw the release of Australian trade balance data. Further data this morning includes Swiss foreign currency reserves, and later we will see the latest employment data coming out of Canada. Call in now to see how this has impacted the market and to get a live price.

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 6th, 2012 by Charles Purdy

Smart Currency Rates and Comments 6th December 2012 – Chancellor speaks, sterling steady

GBP/EUR – 1.2320
GBP/USD – 1.6082
EUR/GBP – 0.8112
EUR/USD – 1.3048
GBP/AED – 5.9048
GBP/AUD – 1.5374
GBP/CAD – 1.5952
GBP/CHF – 1.4901
GBP/HKD – 12.4641
GBP/INR – 87.41
GBP/JPY – 132.56
GBP/NZD – 1.9408
GBP/SEK – 10.6246
GBP/ZAR – 14.1182

Sterling

Sterling’s relatively steady performance yesterday may have come as a surprise to many, as the much anticipated Autumn statement highlighted just how fragile the UK economy still is. With the statement preceded by much weaker than expected Services Purchase Manager Index (PMI ) data – a figure of 50.2 suggests the sector is only just continuing to grow – one would have been forgiven for expecting sterling to fall versus its major trading peers. In fact sterling managed to break a consistent decline versus the euro, and continued to gain ground versus the US dollar and the Japanese yen. This comes in spite of the Office for Budget Responsibility prediction that the economy will contract by -0.1% this year and the Chancellor confirming the UK would miss its debt-to-GDP target. It appears that much of this bad news was “priced in”, hence the muted response from the market. Today sees the release of further influential data, with decisions by the Bank of England on asset purchases and the central interest rate. Forecast to remain constant, any change is likely to significantly affect sterling, so call in now for the latest news.

Euro

The euro had a mixed day yesterday, losing ground on the back of a number of poor sets of data in the morning including a less than impressive benchmark 10-year Spanish bond auction. European retail sales data was also particularly poor as was the Euro-area wide services PMI data that was released. Prices staged a small rally later in the day as Eurozone finance ministers expressed their optimism over the 10 billion euro Greek bond buyback program, a crucial element of the recovery plans. Today the European Central Bank announces interest rates, paramount for currency valuation. No change is expected, but expect markets to react to the press conference held afterwards as the ECB indicates the path going forward. Get in touch now for the most up to date news and rate.

US Dollar

The US dollar stayed fairly range bound yesterday against sterling whilst strengthening slightly against the euro, mainly attributed to markets in Europe rather than any positivity from the US. Unemployment data released yesterday was marginally worse than expected and lends its hand to Friday’s highly influential non-farm pay rolls release. More unemployment data is being released later today and the number of new people claiming unemployment benefits is predicted to have fallen slightly from last week’s reading. Non-manufacturing PMI data announced yesterday was slightly better than expected; but, the focus in the US remains on the looming fiscal-cliff. Obama’s first time interview since his re-election, discussed in depth the fast approaching   influential fiscal cliff. Obama declared that he will make no deal on the country’s fiscal future unless congressional leaders first accept an increase in tax rate for the country’s top earners. This continuing disagreement between the Democrats and Republicans may cause the US dollar to strengthen as investors seek safer havens for their money until there is some sort of resolution. Call in now to discuss what might happen with your trader.

Worldwide

Elsewhere, the Australian dollar performed badly yesterday with the GDP data coming out worse than expected, showing a slowed economy in the last quarter, partially due to tighter government spending and also the lowest consumer demand in 2 and half years essentially validating the interest rate cut decisions made by the central bank. The Japanese yen remained weak especially compared to the US dollar due to the on-going political worries ahead of December 16 elections. Overnight we saw the release of the Reserve Bank of New Zealand’s decision on interest rates with the market forecasts suggesting a hold at 2.50%. Building permits and PMI data will be released from Canada today on what is otherwise a fairly quiet day. Any unexpected data will cause volatility so call in now for the live rate and news.

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 5th, 2012 by Charles Purdy

Smart Currency Rates and Comments 5th December 2012 – Sterling below 1.23 interbank against the euro

GBP/EUR – 1.2272
GBP/USD – 1.6104
EUR/GBP – 0.8145
EUR/USD – 1.3112
GBP/AED – 5.9146
GBP/AUD – 1.5372
GBP/CAD – 1.5962
GBP/CHF – 1.4904
GBP/HKD – 12.4822
GBP/INR – 87.74
GBP/JPY – 132.44
GBP/NZD – 1.9508
GBP/SEK – 10.6232
GBP/ZAR – 14.1420

Sterling

A very busy week of data releases and public announcements for the UK and the rest of the world continues today with the Chancellors Autumn Statement. Sterling struggled yesterday as the Construction Purchase Manager Index (PMI) data was surprisingly low showing the industry had contracted when a mild expansion had been predicted. Today, we have the Services PMI data released, but, the main focus will be on George Osborne’s Autumn statement and the forecasts from the Office of Budgetary Responsibility (OBR)  for the next two years. Yesterday the British Chambers of Commerce downgraded their forecasts for the next two years and it is expected that the OBR statement is unlikely to drive any positivity into the markets. Furthermore, nervousness ahead of the budget will likely weigh on sterling as few analysts expect good news from the treasury, especially as concerns increase over the future of the UK’s AAA credit rating. Get in touch now for the most up to date price.

Euro

The euro continues to strengthen, reaching a 6-week high against the US dollar following the Greek announcement claiming that they would invest around 10 billion euros into national bonds at a much more favourable market price. This was supported by the French Finance Minister. Data showing Spanish unemployment was much better than expected also boosted confidence in the Eurozone in general. On a more negative note, finance ministers from the 27 member states discussed banking supervision and regulation at length yesterday; but, the meeting was adjourned with no agreement being reached. Europe area wide Services PMI data, retail sales data and a benchmark 10-year Spanish bond auction is all on the cards tomorrow; so , there is a lot of room for volatility. Please call in to get a detailed update from your trader.

US Dollar

The US dollar struggled yesterday and hit a six week low against the euro and a four week low against sterling, but rallied towards the end of the day settling in around the 1.61 level. Employment data released today will be used by traders to try and second guess the highly influential non-farm pay rolls release on Friday. As a result, we often see a knee-jerk reaction if the actual releases differs significantly from the forecast figures. Non-manufacturing PMI data is also being released later today and the markets will hope for a much better reading than the dreadful manufacturing PMI figures released on Monday. The biggest news story that continues to move for the US dollar is the impending fiscal cliff; with President Obama stating yesterday the Republican proposal won’t do enough. We will have to wait and see if the two parties can come to some form of agreement before the January deadline. Call in now for a live quote.

Worldwide

Elsewhere, the Swiss franc was one of the worst performers yesterday after Credit Suisse confirmed it would start charging negative interest rates on accounts which hold Swiss francs; as a result, the EUR/CHF rate moved away from its peg at 1.20 reaching 1.2140. The Reserve Bank of Australia cut its interest rates to 3% , down from the previous of 3.25% as was widely anticipated; but, the Australian dollar performed relatively well as the comments from the central bank indicated that another interest rate cut is not likely in the near term. The Bank of Canada kept interest rate on hold at 1% as was widely expected. GDP data was released from Australia late last night and this evening we will see the Reserve Bank of New Zealand’s interest rate decisions and rate statement.

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 4th, 2012 by Charles Purdy

Smart Currency Rates and Comments 4th December 2012 – Positive news supports the euro

GBP/EUR – 1.2322
GBP/USD – 1.6098
EUR/GBP – 0.8112
EUR/USD – 1.3058
GBP/AED – 5.9112
GBP/AUD – 1.5396
GBP/CAD – 1.6020
GBP/CHF – 1.4902
GBP/HKD – 12.4732
GBP/INR – 88.22
GBP/JPY – 131.90
GBP/NZD – 1.9542
GBP/SEK – 10.6424
GBP/ZAR – 14.2410

Sterling

Yesterday was a strong day in general for sterling apart from holding steady against the euro, gaining ground against the majority of its major trading peers and reaching a one month high of 1.61 against the US dollar. Manufacturing Purchase Manager Index (PMI) data came out better than forecast – although it still showed that British industry wasn’t expanding – at 49.1, the highest since September, increasing demand for sterling. Today we will see the release of construction PMI data, forecast to see a slight decline below last month’s figure of 50.9. The main focus though will be on the budget announcement on Wednesday where details of government growth expectations will be put forward which will be closely scrutinized by investors. It is key that the UK maintains its AAA credit rating as this allows it to fund its debt at much lower interest rates than say Spain and Italy. Call in now to see if sterling continues to improve and to get a live rate.

Euro

The euro performed well yesterday as the 17-nation currency continues to strengthen as news spread through the markets that Greece is preparing to buy back up to €10 billion worth of government securities which helped alleviate concerns that the debt crisis is worsening. The Europe wide Manufacturing PMI data which was released confirmed that the sector continues to contract with the figures coming out at 46.2 for November. The most significant data released from Europe today will show the change in Spanish unemployment and traders are sure to play close attention to this release with Spanish unemployment now at 25%. Please call in to get a detailed update from your trader.

US Dollar

The US dollar struggled yesterday as Manufacturing PMI results were lower than expected, showing a contraction on last month’s figures and posting the worst figures since 2009. Nervousness over the impending fiscal cliff also weighed on prices as the dollar touched a 6 week low against the euro. With little data expected today, expect the lower value to consolidate as lawmakers continue to debate the way forward and help a lower risk sentiment for the euro. As sterling buys more dollar than any time in over a month, get in touch to lock in a rate.

Worldwide

Elsewhere, the biggest mover of the day was the Indian rupee, losing significant ground against most major currencies, and falling as much a 1.4% versus sterling. It was a tough day for higher yielding currencies in general, with the Australian and New Zealand dollars both struggling; as an underlying sense of risk-aversion in the global economy decreased demand for riskier assets. Overnight saw Australia cut its interest rate  to 3% , down from the previous of 3.25% which amplified the Australian dollar sell off yesterday. Late on today we will have the interest rate decision from the Bank of Canada which is widely expected to be kept on hold at 1%. Call in now to see how these central bank decisions impact their respective currencies 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 3rd, 2012 by Charles Purdy

Smart Currency Rates and Comments 3rd December 2012 – The euro continues to strengthen

GBP/EUR – 1.2303
GBP/USD – 1.6035
EUR/GBP – 0.8126
EUR/USD – 1.3031
GBP/AED – 5.8871
GBP/AUD – 1.5402
GBP/CAD – 1.5922
GBP/CHF – 1.4832
GBP/HKD – 12.4311
GBP/INR – 87.43
GBP/JPY – 131.99
GBP/NZD – 1.9546
GBP/SEK – 10.6610
GBP/ZAR – 14.2762

Sterling

The euro is in the ascendancy having gained five cents against sterling and seven cents against the US dollar since July. On Friday, sterling struggled across the board, hitting a 5 week low against the euro as optimism over the debt crisis in Greece drove the euro upwards. Furthermore, renewed confidence over a resolution surrounding the so-called fiscal cliff in the US caused global confidence to increase. This week is likely to see greater volatility in pricing, as influential Purchasing Managers’ Index (PMI) data comes out from the Manufacturing, Construction and Services sectors on consecutive days. Furthermore, Thursday’s interest rate announcement and decision on quantitative easing by the Bank of England could cause greater price action; however, both are widely expected to be kept on hold with most economists predicting another round of monetary easing in the New Year. Please call in to get a detailed update from your trader.

Euro

The euro had a strong day on Friday, gaining ground against all its major trading peers as optimism surrounding the latest tranche of the Greek bailout increased. The 17-nation currency touched a 1-month high versus the US dollar, as news that German ministers had approved the latest agreement in Greece’s ongoing rescue package. Friday did see the release of slower than expected inflation data, however speculation that US politicians are hopeful of avoiding the so-called fiscal cliff led to a surge in risk appetite. This week sees a host of data released from Europe with the majority of focus on Spain. Unemployment figures and a Spanish 10-year bond auction on Tuesday will provide an insight into investor’s outlook on the Spanish economy and confidence surrounding its future growth. The European Central Bank (ECB) interest rate decision will also be released however, the President of ECB’s comments on Friday may prove more influential on the euro following the deal on Greek-aid last week. Call in now to see if it has continued to improve, and to get a live rate.

US Dollar

The US dollar had a mixed day on Friday as renewed confidence that the so-called fiscal-cliff situation could be sorted by its January deadline was marred by a raft of weak data being released. Inflation data, personal spending and personal income figures all came out below market expectations. This week we will see a lot of data released including manufacturing and non- manufacturing PMI data alongside US consumer sentiment figures which will identify the level of financial confidence amongst consumers. There is also a raft of employment related data released this week, culminating with the highly influential Non-farm employment data released on Friday. Get in touch now to take advantage of the most up to date price.

Worldwide

Elsewhere, the South African rand was the worst performer on Friday, dropping against all of its trading partners following the release of data showing that its trade gap was 10 times bigger than this time last year. The Japanese yen was also extremely weak on Friday following the news that the Japanese cabinet had approved an additional JPY 132 billion worth of quantitative easing, dropping to a 7 month low against the euro. GDP data out of Canada showed that the economy had stagnated when slight growth of 0.1% had been anticipated. There is a lot of data out of Australia this week including the Reserve Bank of Australia’s interest rate decision, retail sales figures, GDP data, unemployment data and trade balance figures. It is also a busy week for Canada with the Bank of Canada’s interest rate decision, building permits figures and unemployment data. Call in now to speak to a 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 November 30th, 2012 by Charles Purdy

Smart Currency Rates and Comments 30th November 2012 – Euro getting stronger, call Smart to get the latest news

This week                 (Last week)
GBP/EUR – 1.2328      (GBP/EUR – 1.2362 )
GBP/USD – 1.6046      (GBP/USD – 1.5958 )
EUR/GBP – 0.8107      (EUR/GBP – 0.8085 )
EUR/USD – 1.3013       (EUR/USD – 1.2882 )
GBP/AED – 5.8930     (GBP/AED – 5.8605 )
GBP/AUD – 1.5387     (GBP/AUD – 1.5326 )
GBP/CAD – 1.5927       (GBP/CAD – 1.5912 )
GBP/CHF – 1.4852       (GBP/CHF – 1.4901 )
GBP/HKD – 12.4328    (GBP/HKD – 12.3712 )
GBP/INR – 87.44         (GBP/INR – 88.41 )
GBP/JPY – 132.51       (GBP/JPY – 131.41 )
GBP/NZD – 1.9515       (GBP/NZD – 1.9512 )
GBP/SEK – 10.6725      (GBP/SEK – 10.6229 )
GBP/ZAR – 14.0625       (GBP/ZAR – 14.2265 )

Sterling

Increased risk appetite seems to have driven the market over the last 24 hours as we have seen sterling weaken towards 1.23 against the euro and push over 1.60 against the US dollar. Over the course of the week, sterling has some ups and downs as the global focus on the situation with Greece and the looming fiscal cliff in the US has led to market uncertainty and volatility. The main news from the UK was the surprise decision that the Governor of the Bank of Canada Mark Carney would be taking over from Mervyn King in July 2013 as the Governor of the Bank of England. The revised GDP data released confirmed that the UK’s economy has excited the double-dip recession, with the revised figures matching the preliminary data showing GDP increased by 1% in the third quarter and this helped sterling to strengthen. Please call in to get a detailed update from your trader.

Euro

The main news out of Europe this week was that the European finance ministers had agreed to give Greece the next of its bailout to the tune of €44 billion. In addition they agreed to ease the strict measures that were in place, effectively removing €40 billion pounds worth of debt. The markets produced a muted response as traders were left unimpressed by the actions taken at the Eurogroup meetings and worries spread surrounding how a deal on Greece is going to be implemented, as well as requiring further assistance beyond the new aid package. However on Thursday we saw increased risk appetite which helped support the euro even though the German unemployment data released, although in line with expectations, showed that it continued to increase. The President of the ECB is speaking today and a data showing the region wide rate of unemployment will also be released. Call in now to see how this affects the market.

US Dollar

Over the last 24 hours we have seen increased risk appetite weaken the US dollar. During the week the US dollar had stayed fairly range bound. The increased risk appetite came as a result of GDP data coming out at 2.7%, slightly below expectations; but, showing a strong rise from last quarter’s 2% reading highlighting steady growth in the US economy. The number of homes pending sale came out much higher than market expectation; but the number of new homes actually sold fell slightly short of analyst’s predictions. Optimism that the so-called Fiscal cliff could be resolved created risk appetite in the market; but, comments from one of the House Speaker said that the President needed to “get serious” underlines the fragile nature of the situation. In addition, this week we have also seen positive data released in the form of an increase in the demand for durable goods throughout October and US consumer confidence reaching a four year high in November. Get in touch now to take advantage of the most up to date price.

Worldwide

Elsewhere, the Japanese yen performed well this week reaching a one week high against the US dollar. The higher yielding currencies had a mixed week as an increase in risk appetite followed the Greek-aid decision and the optimism that the US fiscal cliff would be resolved with the South African rand hitting a two-week high yesterday; however, the Australian dollar struggled yesterday as investors speculate that interest rates could be cut in the near term.  Monthly GDP data released from Canada will be the main release today and Manufacturing Purchasing Managers’ Index (PMI) from China will be released on Saturday. Call in now to speak to a 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 November 29th, 2012 by Charles Purdy

Smart Currency Rates and Comments 29th November 2012 – Sterling in the doldrums

GBP/EUR – 1.2361
GBP/USD – 1.6020
EUR/GBP – 0.8085
EUR/USD – 1.2957
GBP/AED – 5.880
GBP/AUD – 1.5317
GBP/CAD – 1.5888
GBP/CHF – 1.4875
GBP/HKD – 12.4100
GBP/INR – 88.23
GBP/JPY – 131.60
GBP/NZD – 1.9420
GBP/SEK – 10.6390
GBP/ZAR – 14.07

Sterling

Sterling struggled yesterday against the higher yielding currencies whilst staying relatively range bound against the US dollar and the euro.  Yesterday, one of the members of the Bank of England suggested that the central bank had not ruled out an increase in quantitative easing if it was necessary to boost the UK’s economy.  Data released from the UK showed that lending to individuals fell by £0.3 billion in October, but, on a more positive note the number of mortgages approved reached a 10 month high.  The Governor of the Bank of England is speaking today and we will also see the release of the central bank’s financial stability support, both of which should provide some insight into the state of the UK’s economy.  Please call in to get a detailed update from your trader.

Euro

The euro fell broadly yesterday, as risk appetite decreased due to worries surrounding how a deal on Greece is going to be implemented, as well as requiring further assistance beyond the new aid package. Germany is preparing to vote on this new deal for Greece, with the German Finance Minister open to providing further support. However, the cautionary approach in dealing with the crisis continues to dampen the appeal of the single currency. The German preliminary consumer price index figures came out as expected showing a small decline but the money supply figures came out higher than forecast. Today we see the release of German unemployment data as well as the President of the Deutsche Bundesbank is also speaking. Given the importance of Germany to the Euro zone these will be carefully scrutinized and if anything unexpected occurs volatility is likely to be seen. Call in now.

US Dollar

The US dollar struggled yesterday as concerns about the impending fiscal cliff returned to the fore. The co-chairman of Obama’s 2010 fiscal commission has previously said he sees only a one in three chance that a deal will be reached between the president and Congress in time. The weakening was exaggerated by weaker than expected home sales results. Today sees the release of further home sales data as well as quarterly GDP data which will be very influential.  Forecasts are for growth of 2.8%, if they are right, expect dollar to regain the lost ground, however the downward trend will surely continue if this figure isn’t met. Get in touch now to take advantage of the most up to date price.

Worldwide

Elsewhere, the biggest mover yesterday was the Japanese yen, reaching a one week high versus the US dollar, and managing to snap a prolonged decline against its major trading partners. News coming out of the US that an agreement on how to handle the so-called fiscal cliff remains someway off, led to a significant increase in the demand for traditionally safer assets. The Australian dollar remained subdued following Tuesday’s decline, as speculation remains rife that the economic outlook is not as healthy as previously thought dampened appetite for the higher yielding currency. Overnight we saw retail data released from Japan, along with an indication of business confidence from New Zealand. Call in now to see how this has influenced the markets 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

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