The pound euro exchange rate is 0.366% higher with GBP EUR at 1.1532 at 10 AM in London. The pound US dollar exchange rate is 1.367% higher with GBP USD at 1.5645. The pound Australian dollar exchange rate is 0.483% lower with 1 GBP = 1.5778 AUD Risk appetite is slowly recovering despite Friday’s eurozone debt downgrades, the Australian dollar has benefited though Australian jobs data was poor. Jobs data from the Australian economy hit a four-month low with a larger than expected contraction, but a more positive outlook for the US economy and the eurozone debt situation has seen the aussie find some favour. Gains in Asian stocks also helped the aussie dollar. The pound to Australian dollar pair is trading down near 1.58, well off last week’s highs above 1.63. Risk sentiment certainly seems to have improved in recent sessions, which bodes well for the aussie dollar in the short-term. Sterling traded strongly on Friday and recouped Thursday’s losses, despite calmer market sentiment. The New Zealand dollar has struggled somewhat to take advantage of the less pessimistic trading environment. Today should be a stronger one for the kiwi dollar, which has already made a strong start to the session. The kiwi is sensitive to headlines out of the eurozone and the strong show of commitment from Merkel and Sarkozy should keep it well bid. Sterling is trading just below 2.01 this morning and with riskier assets likely to strengthen today, risks are to the downside today.

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