STERLING was up 0.1% versus the US dollar yesterday regaining ground from Monday’s eight-month low of $1.563/£1. This increase was largely due to a slight rise in risk appetite.
Against the euro however, the pound was flat and hit a day low of €1.144/£1. Out later today we have the BoE (Bank of England) minutes which will determine whether more policy makers want to push forth for another round of quantitative easing. If this is the case, it will not only expand the BoE’s balance sheet, but may have a negative impact on sterling, so call in now for a rate.
In the Euro zone, the euro fell slightly versus the US dollar after rating agency S&P downgraded Italy. Weak German data did not help the single currency either. German investor sentiment fell to its lowest in three years whilst German producer price index dropped 0.3%. On a more positive note, Greece declared that it has paid off two bond coupons worth 769 million euros. Worry over Greece’s ability to meet targets is still present. Out today is Euro zone industrial orders. Call in now for a quote.
In the US, the US dollar was up against the euro but slipped 0.1% versus a currency basket. Housing data out yesterday showed an unexpected 3.2% rise in building permits for the month of August, reaching the highest level since January 2011. Many are waiting for the today’s announcement by Federal Reserve officials which may signal a third round of quantitative easing to decrease unemployment in the US. Just like the UK, if this measure were to be put in place, it would without a doubt dilute the value of the US dollar. Call in now for a live rate.
Elsewhere, the safe haven Swiss franc weakened by 0.5% against the euro and 0.7% to the US dollar. This is likely to be due to market rumours that the Swiss National Bank may increase its previous euro intervention of €1.20 to €1.25. The Australian dollar also regained ground yesterday as global stocks rebounded in addition to commodities. Call in for a quote.
EURO/GBP – 1.1461
US$/GBP – 1.5690
CHF/GBP – 1.4052
CAN$/GBP – 1.5591
AUS$/GBP – 1.5265
ZAR/GBP – 12.1055
JPY/GBP – 119.81
HKD/GBP – 12.2264
NZD/GBP – 1.9076
SEK/GBP – 10.4054
US$/EURO – 1.3686
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