Last Week                                This Week
(GBP/EUR – 1.1989)                 GBP/EUR – 1.1996
(GBP/USD – 1.6208)                 GBP/USD – 1.6328
(EUR/GBP – 0.8339)                 EUR/GBP – 0.8332
(EUR/USD – 1.3517)                 EUR/USD – 1.361
(GBP/AED – 5.9524)                 GBP/AED – 5.997
(GBP/AUD – 1.7634)                 GBP/AUD – 1.7935
(GBP/CAD – 1.7099)                 GBP/CAD – 1.7287
(GBP/CHF – 1.4766)                 GBP/CHF – 1.4785
(GBP/HKD – 12.563)                 GBP/HKD – 12.6592
(GBP/INR – 101.98)                 GBP/INR – 102.187
(GBP/JPY – 163.73)                 GBP/JPY – 167.12
(GBP/NZD – 1.9734)                 GBP/NZD – 2.0105
(GBP/SEK – 10.651)                 GBP/SEK – 10.6862
(GBP/ZAR – 16.426)                 GBP/ZAR – 16.693

Sterling was by far the biggest winner this week, gaining strength against all of its major partners and hitting highs against the Australian and Canadian dollars last seen in 2010 and 2009 respectively. We also saw sterling reach the highest level against the US dollar since the start of the year following the release of the second estimate of Gross Domestic Product which showed the UK’s economy has continued to accelerate in the third quarter. Sterling then continued its march yesterday by making further gains against both the US dollar and the euro following comments from the Governor of the Bank of England. The Governor’s comments about ending mortgage lending incentives pushed sterling to a third consecutive day of gains against the US dollar, as investors feel  this move will lower the risk of financial instability stemming from the housing market. Today, there is nothing of major significance expected to be released from the UK to affect sterling markets, with the Nationwide House Price Index the most influential piece liable to have an impact. Get in touch with your trader now for the latest sterling rates, after a highly positive week for the UK currency.

The euro gained momentum this week, strengthening consistently against the US dollar and Japanese Yen, whilst depreciating against sterling following strong mid-week GDP figures for the UK. Overall the week has been less eventful than the week previous as Eurozone data was relatively spare in the early stages of the week. Events in Germany – the Eurozone’s largest economy – lent support to the single currency towards the end of the week as German inflation data, Consumer Confidence and the formation of a coalition Government weighed in the euro’s favour. The better than expected inflation data in particular aided the performance of the single currency as it meant that the European Central Bank is less likely to either reduce interest rates further or introduce quantitative easing to the Eurozone. There is potential for further euro movements today as flash Consumer Price Index for the Eurozone are due. This data is a key measure of inflation and therefore traders will be interested to see whether the improvement in Germany is mirrored at large. Call your trader now for a complete update on euro crosses.

The US dollar’s week has been far from impressive, with a mix of strong and weak US economic data being somewhat overshadowed by the currency hitting the lowest level since January against sterling. As was the case last week, Monday brought further speculation surrounding the potential tapering of the Federal Reserve’s quantitative easing program. US dollar prices fluctuated as home construction data came in ahead of expectations, whilst consumer confidence fell short of market estimates. After hints that we could see tapering at Decembers central bank meeting, impressive unemployment figures from across the pond helped further cement this idea in traders’ minds before comments from Federal chairman Ben Bernanke quickly suppressed this idea as he raised concerns about the economy’s long term prospects. Yesterday then saw no economic data released from the US as bank’s were shut in accordance to the Thanksgiving bank holiday, creating decreased liquidity and in turn a higher degree of volatility in the market. No significant economic data releases are scheduled for today that could impact the US dollar, although as always, it is the unexpected that drives the most significant market movements. Get in touch with your trader now for the latest dollar rates, after a disappointing week for the US dollar.

Elsewhere this week, we saw the Canadian dollar lose significant ground following an agreement on Monday that Iran will curb much of its nuclear weapons programme in return for the lifting of sanctions imposed on the country’s international trade which saw the price of crude oil drop. With oil being the primary commodity being shipped out of the export-reliant nation, any significant drop in price can heavily impact Canada’s trade balance. As a result, the Canadian dollar dropped to 2009 lows against sterling yesterday evening, with the situation exacerbated by worse-than-forecast trade balance figures released yesterday morning. The Australian dollar had an equally difficult week amid sentiment that the currency is overvalued, and that the inflated price could have a detrimental impact on the export-reliant economy. This came to a head yesterday when the Reserve Bank of Australia signalled that an intervention may be imminent. Following the news regarding the Iranian nuclear program, traders sold off the traditionally safe-haven Japanese yen this week as they looked to buy in to riskier assets. As a result, we saw the Japanese yen decline as well. Looking forward to today, we have GDP figures out of Canada. Get in touch with your trader for a live rate.

GBP/EUR – 1.1984
GBP/USD – 1.6308
EUR/GBP – 0.8343
EUR/USD – 1.3609
GBP/AED – 5.9901
GBP/AUD – 1.7873
GBP/CAD – 1.7268
GBP/CHF – 1.4750
GBP/CNY – 9.9350
GBP/DKK – 8.9353
GBP/HKD – 12.642
GBP/HUF – 358.49
GBP/INR – 101.68
GBP/JPY – 166.56
GBP/NZD – 1.9997
GBP/RUB – 54.105
GBP/SEK – 10.733
GBP/THB – 52.369
GBP/ZAR – 16.682

Sterling was the stand out performer yesterday, soaring against all of its most traded partners following the release of the Gross Domestic Product growth figures for the third quarter. The figures showed economic growth in the UK had continued to accelerate which helped sterling strengthen considerably against all of its most traded partners – despite an initial drop – reaching its highest levels for the whole year against the US dollar. The report showed house building and investment was the driving force behind the positive reading. Today, the financial stability report and accompanying speech by Bank of England Governor Mark Carney will be the focal point for sterling investors, along with the continued reaction to yesterday’s movements, as sterling tries to hold on to these strong levels. Call your trader now for the latest sterling rates.

The Eurozone received a partial boost yesterday as Germany came to an agreement on the formation of a coalition Government. The news did not impact hugely on the single currency but gains were made against the US dollar. The currency weakened sharply against sterling in response to UK GDP figures. The euro did however reach new highs against the Japanese Yen. Whilst the German elections were not weighing heavily on the currency markets, instability – such as that seen when the Italy faltered in forming a Government – can cause weakness. In addition, German Consumer Climate data came through slightly higher than predicted. Today is the busiest day of the week for the euro as we await preliminary inflation data and unemployment figures from Germany, before seeing the Spanish House Price Index and Italian 10-year bond yields. Call your trader now to stay on top of euro movements.

The US dollar had a mixed day in itself yesterday, despite hitting a year low against sterling following strength from the UK currency. Unemployment claims from stateside helped the dollar claw back some of this lost ground, as it came in ahead of expectations. Given its influence over when the Federal Reserve will start to taper its quantitative easing program, strong figures from this area continually stoke the fire of an earlier taper, although the prospect of a December taper was dampened somewhat by comments from Federal Reserve Chairman Ben Bernanke. In his speech, he revealed that the central bank garnered concerns about the long-term prospects for their economy, even with the strong projected growth for 2014. Today, there is no activity from the US as they have a Bank Holiday in celebration of Thanksgiving, and as such events elsewhere could dominate markets. Call your trader for the latest on the US dollar, as investors have a day to mull over previous events.

Elsewhere yesterday, the Japanese yen continued its difficult start to the week. An announcement on Monday from Bank of Japan eluded toward policy makers having worries over the outlook of the Japanese economy, which triggered a sell-off of in Japanese stocks. The Canadian dollar struggled, touching 4-month lows against its US counterpart as crude oil, Canada’s biggest export, fell in price for the fourth day in a row. The Australian dollar also weakened yesterday in continuation of the sentiment from this Australian central bank earlier this week that the currency is overvalued, and that if it remains at these levels it could have a detrimental impact on the export-reliant economy. Overnight last night we had business confidence figures out of New Zealand and private capital expenditure data from Australia. Get in touch with your trader for a live rate.