After a relatively good week for sterling, yesterday the pound weakened against many of its major counterparts. Sterling dropped 0.6% versus the US dollar in addition to falling for a third consecutive day against the euro. Much of this was fuelled by a drop in U.K. consumer confidence in July as well as a drop in sentiment index as noted by Nationwide Building Society. On a positive note, U.K. government bonds erased loses which means 10 year yields have only changed by 2.47%. It is becoming apparent that this week’s assumption of sterling as a ‘semi haven’ is altering, particularly with yesterday’s comments from Bank of England Policy Maker, Martin Weale who has decided to put aside his call for an interest rate hike this month. Call in for a quote now.

In the Euro zone, the euro weakened against the US dollar but gained as much as 0.4% versus the Japanese yen. German stock markets fell by 4% in just 15 minutes yesterday as investors became concerned that the country’s public finances are deteriorating. Markets have begun to question the ability of France and Germany to effectively deal with the sovereign debt crisis after being regarded as the driving forces behind the euro zone for some time. German GDP growth came to a near standstill – call in now to ensure you don’t lose out.

The US dollar played to its safe haven status yesterday as it rose against a number of currencies on speculation that today’s Federal Reserve meeting will not call for new initiatives to stimulate the economy. There was weaker than expected unemployment figures which showed that jobless claims increased to 417,000. This week the US dollar dropped versus the yen and euro but regained its ground yesterday. With a combination of both good and bad economic data throughout the week, market players are eagerly awaiting Federal Reserve Chairman Ben Bernanke’s speech later today. Last year, he predicted the central bank’s second round of quantitative easing. Be prepared and get a quote now to stay protected.

Elsewhere, the yen fell against a basket of currencies as there was an increase in demand for the safety of US treasuries. The Australian dollar also decreased for a second day against the US dollar and 15 of its major peers. This is largely due to the fact that there has been a fall in consumer sentiment in Germany which has weakened the demand for higher yielding assets. Call in now and get a live rate.

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