Smart Currency Rates and Comments 13th December 2012 – The Euro in the ascendancy again
GBP/USD – 1.6128
Markets seem to have forgotten about the threat of interest rate cuts in the euro zone as the euro had a good day. Sterling on the other hand had a mixed day yesterday, losing half a cent against the euro whilst reaching a 6 week high of 1.6170 against the US dollar on the back of the news that the US central bank had increased monetary easing. Sterling started the day in the ascendancy following much better than expected employment data. Figures released showed that the number of people claiming unemployment benefits actually fell by 3,000 in the last 3 months when a 5,900 increase had been anticipated. Furthermore, the overall unemployment rate stayed at 7.8% when a marginal increase had been expected. There is very little data out of the UK today bar data showing the expected order volumes from manufacturers over the next 3 months. Get in touch now for the most up to date news and rate.
The US dollar fell against all its major counterparts bar the Japanese yen yesterday ahead of the Federal Reserve announcement that it had extended its monetary stimulus measures, and fell even more quickly following the announcement. The announcement also included the news that interest rates will be held at these low levels until the unemployment rate falls to 6.5% which is likely to continue to weaken the dollar. This is the third major round of quantitative easing in the US, so the markets are hardly shocked by the move – some analysts predict that the shift will be short lived, but the fiscal cliff still looms over affairs. Today a swathe of data is released around lunch time which could turn the tide. After poor results last month, a swing to the positive for Retail sales and inflation data could be especially influential. Get in touch now for the most up to date pricing.