Smart Currency Daily Exchange Rates
GBP/EUR – 1.2811
GBP/USD – 1.5576
EUR/GBP – 0.7803
EUR/USD – 1.2156
GBP/AED – 5.7205
GBP/AUD – 1.8997
GBP/CAD – 1.8065
GBP/CHF – 1.5408
GBP/CNY – 9.6643
GBP/DKK – 9.5402
GBP/HKD – 12.079
GBP/HUF – 403.16
GBP/INR – 98.409
GBP/JPY – 186.32
GBP/NZD – 1.9852
GBP/RUB – 90.684
GBP/SEK – 12.031
GBP/THB – 51.090
GBP/TRY – 3.6214
GBP/ZAR – 18.027
Sterling rises against the US dollar and the euro
Despite falling away during early trading yesterday, sterling recovered well throughout the day to erase Monday’s losses against both the euro and US dollar. UK home prices were shown to have grown by the slowest rate in more than a year in December, showing only a 7.2% rise. Sterling rose against the US dollar, however, as former Federal Reserve Chairman Greenspan warned that the US economy was still sluggish, and that inflation would be a concern moving forward.
Positive movement was also seen against the euro, following confirmation that the Greek parliament’s refusal to accept the Greek prime minister’s nominee for the presidency would trigger a snap election in late January. Uncertainty over how this could affect Greece’s repayments of their bailout package saw the euro struggle throughout the afternoon.
Today sees US unemployment claims take centre stage, while a bank holiday in Germany could result in lower euro trade volumes.
So please call your trader today to check what is happening to the euro, US dollar and other currencies against sterling and see if there are any buying opportunities as we approach the year end.
Euro continues to show weakness
It was a quiet day for the euro yesterday, with the single currency weakening a little following poor Spanish inflation figures, but on the whole experiencing little volatility.
As we approach 2015, the euro is on track for its biggest annual depreciation since 2005, down 12% against the US dollar since January 2014.
We expect another understated day for the euro today, with no significant data releases expected. A German bank holiday may see liquidity in the market fall a little, and as a result increase volatility, but with no fundamental data to drive movement, we may not see much of an impact.
Our traders are always happy to take a call, even on the last day of the year, so please call to get the latest update on the euro.
A disappointing day for the US dollar
The US dollar had a more disappointing day yesterday, falling against the majority of its most traded partners. This was in part due to the only US data piece of note released, the Consumer Confidence figure coming in below expectations.
The dollar still looks to be ending the year on an overall positive note, however, having made gains against all 31 of its major partners since January 2014. This strength has come largely from quickening growth and subsequent speculation over the raising of interest rates.
We expect a number of further data releases today, on the final day of the year. The most significant of these is likely to be the unemployment claims, with the labour market always a key area to indicate economic strength. Supporting this data are a few smaller points, including the Chicago Purchasing Managers’ Index and the Pending Home sales figure. As such, there is still some opportunity for the dollar move further at the end of a largely successful year.
The US dollar has had a stellar year, so please give us a call to see if on the final day it is ending the year in style.
Swedish currency strengthens
The Swedish kroner strengthened yesterday, as Sweden’s trade balance came out better than expected at -700m in comparison to last month’s figure of 1.1bn. Today is a bank holiday for the Swedish Kroner so it was a positive end to the year for the Kroner.
Owing to the festive break, there is very little data that could hint at or cause volatility throughout other currency markets. Most other movements of note have been due to sterling weakness.
Please give us a call even if it so we can wish you a wonderful and prosperous New Year!
Smart Currency Daily Exchange Rates
GBP/EUR – 1.2764
GBP/USD – 1.5539
EUR/GBP – 0.7832
EUR/USD – 1.2172
GBP/AED – 5.7066
GBP/AUD – 1.9036
GBP/CAD – 1.8067
GBP/CHF – 1.5344
GBP/CNY – 9.6365
GBP/DKK – 9.5014
GBP/HKD – 12.053
GBP/HUF – 402.26
GBP/INR – 98.735
GBP/JPY – 185.68
GBP/NZD – 1.9852
GBP/RUB – 89.345
GBP/SEK – 12.154
GBP/THB – 51.073
GBP/TRY – 3.6050
GBP/ZAR – 18.065
Sterling dips lower following warnings of political uncertainty
A poor start to the week for sterling as it drifted lower across the board on a quiet day of trading and much lower trading volumes during the holiday period. We have seen first thing this morning a small pickup against the euro.
Sterling found itself under pressure after the British Chambers of Commerce warned that political uncertainty in the UK was unsettling investors in advance of the 2015 general election. In addition, it is looking increasingly likely that the Bank of England will not look to raise interest rates until early 2016, thanks in part to a cooling housing market and lower than expected inflation triggered by falling commodity prices. This saw sterling fall away from recent multi-year highs against the euro, and continue to struggle against the US dollar.
Another quiet day lies ahead, with housing inflation data set to be the only influential data release from the UK. Please call your trader to get a detailed update as exchange rates can move quickly.
Greek developments weaken the euro
Political developments in Greece look set to undermine the euro and the Eurozone as the Greek Prime Minister Antonis Samaras said on live TV in Athens that it is likely that parliamentary elections will be held on January 25, a year and a half before his coalition’s term was due to end. The likelihood of the Greeks electing an anti-austerity party seem high which will put the country into direct conflict with the European Central Bank (ECB) and the International Monetary Fund. Uncertainty should be bad for the euro but the markets may take a different view as the Greek position needs clarity and a final solution rather than the current situation which is viewed as being untenable.
Today sees some data releases from Spain and Italy – from Spain we await the Consumer Price Index, expected at -0.7%, and from Italy the Business Confidence Index. Difficult to see these data releases having any major influence on the euro as expectations are already set low, although such a high level of deflation in Spain must be a worry and increase the likelihood of the ECB undertaking some form of quantitative easing sometime soon.
Please call your trader to get the latest update on the euro and see what effect worries over Greece is having.
No real movement for the US dollar
The US dollar had a largely uneventful start to this week, which was unsurprising given the distinct lack of data worldwide. The US currency did make slight but steady gains against sterling, but was little changed against the euro, as neither currency saw any particular movement.
Today does see some activity return to the data releases from the USA, with a single piece of note due this afternoon in the shape of the Consumer Confidence figure, which could see some impact on the dollar markets in an otherwise quiet environment.
With data low and market liquidity limited in this interim period between Christmas and the New Year, there is the potential for augmented market movements, particularly if any data is exceptional. Therefore please give your trader a call to get the latest update and exchange rates.