Smart Daily Blog
Author: Charles Purdy
Published Date: 08th September 2010EURO/GBP - 1.217
US$/GBP - 1.543
CHF/GBP - 1.557
CAN$/GBP - 1.619
AUS$/GBP - 1.686
NZD/GBP – 2.150
EURO/US$ - 1.267
Sterling fell to a 6 week low against the US dollar yesterday after concerns over the European banking sector and financial difficulties in the housing sector. Social housing maintenance firm Connaught suspended trading in its shares on Tuesday after failing to secure enough funding to pay its debts. The BBC said that the firm is on the brink of administration. Data from the British Retail Consortium showed that sales grew in August, but consumers remained cautious. With investors spooked by risk aversion, sterling hit $1.5298/ £1 – the lowest in 6 weeks. Sterling dropped to a 6 week low against the euro on Monday. There has been some respite however, as a Halifax survey of house prices came in better than expected showing that prices rose by 0.2% against an expectation of a 0.3% drop. Later today we have industrial production and manufacturing data. Call in now to ensure you minimise your risk.
In the Euro zone, fresh worries over the European banking sector were sparked after an article published in the Wall Street Journal stated that the much criticised European bank stress tests had understated the exposure of many of the banks to risky assets. This followed an announcement by Germany’s banking association that the country’s 10 largest banks would need an additional €105bn injection in order to comply with new banking regulations regarding capital adequacy. There is industrial production data out today. Call in now for an exact exchange rate.
In the USA, as a result of the investor jitters over Europe, risk aversion jumped which saw a boost in demand for the US dollar as investors looked for safer haven to invest their funds. In a week of light data releases for the USA, there is some data released later on consumer credit. Call in now for a live exchange rate.
Elsewhere, the Japanese yen gained 0.4% overnight against major counterparts as stock exchanges slumped in Asia and investors moved riskier investments back in to the safe haven of the yen. Speak to a trader today about your upcoming requirements to ensure you are adequately protected.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx
Author: Charles Purdy
Published Date: 07th September 2010EURO/GBP - 1.206
US$/GBP - 1.538
CHF/GBP - 1.558
CAN$/GBP - 1.601
AUS$/GBP - 1.689
NZD/GBP – 2.133
EURO/US$ - 1.275
Sterling has had a difficult seven days with the release of poor UK economic data raising significant concerns on the UK’s recovery. On Thursday we have the Bank of England meeting and sterling is being undermined by the worry that the BoE may revisit their programme of quantitative easing given the poor data. This has been on hold since the last quarter of last year and in the past when utilized has led to sterling losing value. Given these worries I would suggest you get in touch to minimise your risks in these highly volatile times.
Sterling continues to hover around the €1.20 level which is a key level of support. Economic data following the summer season is in short supply. The German economy is still the key driver for the euro zone and so long as this keeps on moving forward then we will see support for the euro.
As highlighted yesterday economic data out of the US has been mixed and a bit like the UK the markets are wondering what this means with regard to quantitative easing. The Federal Reserve meets later this week and just like here in the UK the markets are nervous as to what may happen. So this week although starting quietly on the data front could have a highly volatile ending and hence the need to minimise your risks by getting in touch now.
Commodity backed currencies continue to gain on the back of increase investor confidence. The Far East seems to be moving forward while the western world falters.
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
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