EURO/GBP – 1.210
US$/GBP – 1.459
CHF/GBP – 1.672
CAN$/GBP – 1.515
AUS$/GBP – 1.737

Sterling recovered yesterday when investors bought back into the pound after analysts stated that the pound had been oversold on Tuesday following comments by credit rating agency Fitch. In the end, the comments made by Fitch added nothing new to what the markets knew already. Concerns over the deficit and a potential credit rating agency have been around since the start of the year, and many investors have been calmed by the aggressive cost cutting measures that have already been announced by the new government. As a result, the pound hit $1.4578/ £1 and was helped along by a strong performance by stock markets as risk aversion eased slightly. The pound is likely to remain under pressure in the run up to the emergency budget on June 22nd as investors remain cautious. There is a lot of data out today, with the main UK news being the Bank of England’s interest rate decision. Whilst it is expected to remain on hold for the considerable future, there could be volatility if any comments are made regarding the £200bn asset purchasing facility. Call in now to ensure you take advantage of any movement.

In the Euro zone, there was little data out yesterday and the single currency took its lead from general sentiment and reaction to other currencies. With sterling having a strong day, the euro fell towards the 18 month low it hit last week, with the pound firmly back over the 1.21/£1 mark. Out later today, we have the European Central Bank press conference in which the bank will outline this month’s interest rate and monetary policy decision. The press conference can cause considerable volatility if any of the comments made are unexpected. In addition, there is some French unemployment data out this morning. Get in touch with a trader to make sure you are buying at the right time.

In the USA, the US dollar fell yesterday as risk appetite increased. There is a fair amount of data out today, with the trade balance expected to show a widening to $42bn. In addition, Treasury Secretary Geithner addresses the Senate on China later this afternoon. There could be some interesting discussion regarding the exchange rate ‘peg’ (i.e. fixed exchange rate) that is in place between the US dollar and Chinese yuan. The US dollar seems to be swinging back and forth at the moment on sentiment – call in now to ensure you catch it at the right time.

Elsewhere, New Zealand raised their interest rates by 0.25% to 2.75% for the first time since the credit crunch hit. A report by Credit Suisse shows that many expect another 0.25% rise at the next meeting in July. Rising interest rates mean a stronger currency – ensure you don’t miss out. The Australian dollar strengthened as data showed an unexpected jump in the number of jobs added to the economy last month. Call in to ensure that any payments you are making do not increase.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

EURO/GBP – 1.153US$/GBP – 1.443CHF/GBP – 1.660CAN$/GBP – 1.534AUS$/GBP – 1.741 Sterling recovered from yesterday’s 14 month low against the US dollar as investors unwound ‘short’ positions in the pound as fears over European regulation hit investor confidence. German chancellor Angela Merkel’s banned ‘naked short’ selling of national debt – i.e. selling an asset you  Continue Reading…

EURO/GBP – 1.174US$/GBP – 1.432CHF/GBP – 1.644CAN$/GBP – 1.493AUS$/GBP – 1.673 So the UK parliament met for the first time yesterday following the general election. Some people were sitting next to people they probably thought they would never sit next to ever in Parliament [e.g. David Cameron and Nick Clegg]. But we are in a  Continue Reading…

EURO/GBP – 1.173US$/GBP – 1.441CHF/GBP – 1.643CAN$/GBP – 1.495AUS$/GBP – 1.646 Sterling has hit a 13 month low against the US dollar in early trading this morning and also fell against the euro as house price data for the UK raised concerns over the health of the domestic economy. This is a particular worry as  Continue Reading…

EURO/GBP – 1.165US$/GBP – 1.458CHF/GBP – 1.634CAN$/GBP – 1.493AUS$/GBP – 1.629 Sterling fell yesterday against the US dollar and euro as the UK’s trade balance widened by more than expected. In March, the UK imported £6.3bn more than it exported and in April this gap increased by more than £1bn to £7.5bn. Exports remained steady  Continue Reading…

EURO/GBP – 1.174US$/GBP – 1.484CHF/GBP – 1.645CAN$/GBP – 1.502AUS$/GBP – 1.648 After a strong start to the day following the formation of a new government, sterling fell against the US dollar and euro. The pound hit a low of $1.4821/ £1 after opening above $1.5040/ £1. Against the euro, sterling fell from a high of  Continue Reading…

EURO/GBP – 1.182US$/GBP – 1.501CHF/GBP – 1.666CAN$/GBP – 1.527AUS$/GBP – 1.676 Sterling rose yesterday as Gordon Brown tendered his resignation from office and David Cameron became our new Prime Minister, agreeing a coalition with the Liberal Democrats that sees them part of government for the first time in 70 years. After a volatile day, sterling  Continue Reading…

EURO/GBP – 1.165US$/GBP – 1.484CHF/GBP – 1.646CAN$/GBP – 1.518AUS$/GBP – 1.649 Sterling gained against the US dollar throughout most of yesterday, hitting a high of $1.5054/ £1 as speculation over a deal between the Conservatives and Liberal Democrats helped calm market concerns over the political situation in the UK. Despite being up nearly 1.7% against  Continue Reading…

EURO/GBP – 1.143US$/GBP – 1.495CHF/GBP – 1.638CAN$/GBP – 1.529AUS$/GBP – 1.649 After a turbulent week for the pound last week, and the most closely fought election for nearly forty years, we are still in store for a turbulent week on the foreign exchange markets. Sterling recovered marginally from Friday morning’s lows against the US dollar  Continue Reading…

EURO/GBP – 1.150US$/GBP – 1.462CHF/GBP – 1.630CAN$/GBP – 1.539AUS$/GBP – 1.647 Sterling has had a rollercoaster ride over the last 24 hours. We saw it hit 1.1860/ £1 at one point yesterday, before falling to a low (at the time of writing) of 1.1532/ £1 as sterling goes into freefall this morning as current predictions  Continue Reading…