Sterling strengthened slightly against the euro and US dollar yesterday despite data showing that construction activity fell more than estimated in June, adding to speculation that the Bank of England will keep interest rates at a record low well into next year. The pound gained some support following a report by Recruitment Company Reed that showed UK job creation accelerated in June – particularly in the insurance and engineering sectors. Sterling’s biggest move was against the Australian dollar which slipped following poor figures. Out today, we have UK house prices and services sector activity so call in now for a live exchange rate.

In the euro zone, the euro slipped from one-month highs against the dollar after credit rating agency Standard & Poor's said that a planned ‘debt rollover’ being considered for Greece may put the country into selective default. However, expectations remain for a second Greek bailout in September that helped support the single currency. European Finance ministers meet on July 11 to work on Greece’s next rescue package, after the release of funds over the weekend staved off a default until September. The euro could strengthen further on Thursday if the ECB goes ahead with a planned interest rate hike. Call in now to protect yourself from any adverse market movements.

In the USA, the markets were closed yesterday for the Independence Day holiday which meant trading volumes were very light. This meant that the Canadian dollar was little changed against the US dollar, despite the close correlation between risk appetite and the relative strength of the Canadian currency. Out later this week, we have key non-manufacturing activity figures and non-farm payrolls on Friday. Call in now for a live price.

Elsewhere, the South African rand was on track for the longest run of gains against the US dollar for a year as risk appetite drove demand for the higher yielding ‘riskier’ currency following the approval of the EU payout for Greece. In addition, the Swiss franc fell after retail sales slumped by 4.1% in May from a year earlier. Call in now for a live price.

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