EURO/GBP – 1.217
US$/GBP – 1.563
CHF/GBP – 1.645
CAN$/GBP – 1.622
AUS$/GBP – 1.737
NZD/GBP – 2.193
EURO/US$ – 1.284

It has been a mixed week for sterling which ended the week up against the euro and down against the US dollar as a fresh wave of risk aversion hit global markets. Sterling hit a new 6 month high of $1.5999/ £1 on Monday but then dropped to a 2 week low of $1.5565/£1 on Thursday. The reason for this sudden increase in risk aversion was as a result of Wednesday’s Bank of England quarterly inflation report. This was a key assessment of the new government’s spending cuts and tax hikes and as a result, growth forecasts were slashed and inflation is expected to be well within the target 2% level within 2 years. More importantly, the Bank left the door wide open for further emergency Quantitative Easing if it is needed. This left financial markets concerned over UK recovery. Poor housing data and lower consumer confidence added to sterling’s problems and the strength against the Euro was related to risk aversion caused by the US economy. Call in now to ensure you don’t lose out on further poor market movements

In the Euro zone, sterling has broken out of the tight range we have seen over the last 2 weeks against the euro after the US Federal Reserve voted to inject further money to jumpstart the flagging US recovery. This saw investors pull out of riskier euro assets and buy into the safer currencies of US dollar and sterling. As a result, the euro lost over 2% against the US dollar and 1% against sterling. Poor data from Greece and a drop in European industrial output on Thursday kept the euro under pressure. Out today, there is GDP data for the region so call in now to ensure that you don’t miss out.

Against the US dollar, sterling jumped to a 6 month high against US dollar this week, but since Monday sterling has been on a downward trend after the Federal Reserve announced further Quantitative Easing. On Wednesday, the decision was made that the US economy had underperformed for the last quarter and as such, it needed a further boost. As a result, risk aversion is back in play and there is strong demand for the safe haven US dollars despite major concerns over the US economy. Now might be a good time to secure prices to stop the market moving further against you as some analysts are predicting a return to the $1.40s. Today could be interesting too, as according to some research, an estimated 17-21 million people in the USA are afflicted by a fear of Friday the 13th (or friggatriskaidekaphobia) and the US economy loses between $800-$900m as people become too afraid to leave the house – ensure you don’t miss out by speaking to a trader today.

Elsewhere, retail sales in New Zealand came in far better than expected and as a result, the New Zealand dollar has outperformed major counterparts overnight. This countered last week’s disappointing unemployment rate and many traders questioned whether the central bank would in fact need to raise interest rates further in the year. Call in now for a live exchange rate.

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 – 1.210US$/GBP – 1.459CHF/GBP – 1.672CAN$/GBP – 1.515AUS$/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  Continue Reading…

EURO/GBP – 1.211US$/GBP – 1.447CHF/GBP – 1.679CAN$/GBP – 1.529AUS$/GBP – 1.773 Sterling hit a fresh 18 month high against the euro yesterday and also strengthened against the US dollar. The pound jumped to 1.2176/ £1 as rumours circulated that investors were moving funds from German ‘bunds’ (government bonds) into UK government bonds (also known as  Continue Reading…

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EURO/GBP – 1.175US$/GBP – 1.452CHF/GBP – 1.674CAN$/GBP – 1.526AUS$/GBP – 1.702 Its all about risk at the moment and whether you are risk adverse or you have risk appetite. Last week was definitely a week where risk aversion was to the fore and the US$ given its safe haven status in the ascendancy. The second  Continue Reading…

EURO/GBP – 1.168US$/GBP – 1.440CHF/GBP – 1.664CAN$/GBP – 1.537AUS$/GBP – 1.733 Sterling fell by 1% yesterday against the US dollar as investors continued to suffer from risk aversion. At one point the pound hit $1.4250/ £1 but recovered slightly towards the end of the day. Sterling performed well against the euro, breaching 1.17/ £1 before  Continue Reading…

EURO/GBP – 1.167US$/GBP – 1.428CHF/GBP – 1.662CAN$/GBP – 1.536AUS$/GBP – 1.757 Sterling gained over 1% against the euro yesterday and fell against the US dollar. The pound hit a high of 1.1646/ £1 and fell to a daily low of $1.4353/ £1 before pulling back ground towards $1.4430/ £1. The strength against the euro was  Continue Reading…

EURO/GBP – 1.160US$/GBP – 1.441CHF/GBP – 1.667CAN$/GBP – 1.527AUS$/GBP – 1.739 Sterling recovered on Friday after a volatile week on the currency markets. With last week’s trading dominated by risk aversion related to Greece, the move by Angela Merkel to ban ‘naked short selling’ (selling assets that are not owned in order to profit from  Continue Reading…

EURO/GBP – 1.158US$/GBP – 1.437CHF/GBP – 1.651CAN$/GBP – 1.512AUS$/GBP – 1.722 The new Chancellor of the Exchequer made his first speech yesterday outlining some of his thoughts on how to encourage businesses to the UK rather than driving them away. Key in this was a reduction in corporation tax. All makes sense because without a  Continue Reading…