Sterling had a positive end to the week, breaking above €1.15/£1 against the euro and nearly hitting $1.66/£1 against the US dollar earlier in the week. Retail sales out today for July increased by a slim 0.2% showing consumers and retailers are still in difficult circumstances. This did cause sterling to fall slightly yet it still remained within sight of Wednesday’s 3 ½ month high of $1.6590/£1 against the US dollar. Sterling held up against the euro as well as European shares showed signs of weakening. Moreover, with interest rates placed on hold by a unanimous vote from the Bank of England earlier in the week, there is now speculation that quantitative easing could be back on the table. At a time when sterling is performing better in comparison to the euro and US dollar, take advantage and call in to get a live quote.

In the euro zone, it has been a poor week for the single currency with European GDP figures disappointing earlier in the week. Germany (seen as the only real economic powerhouse in the region) posted woeful growth figures as the region showed growth of only 0.2% - a drop from last month’s 0.8%. Investment bank Morgan Stanley cut its euro zone growth forecast as a key member of the European Central Bank said that he was fearful of an extended period of low inflation and poor growth. This week also saw a rather lacklustre response to a meeting between French and German leaders after they announced new measures to combat the sovereign crisis. Out today we have German wholesale price inflation so speak to a trader to ensure you don’t lose out.

In the USA, there was mixed economic data yesterday with jobless claims rising to 408,000 - the highest this month. On the other hand, consumer price inflation came in higher than expected with a 0.5% increase for June. This meant core CPI rose 1.8% year on year. The US dollar did show signs of strength alongside the Swiss franc and the yen as investors looked to safer haven assets on the back of a poor week in Europe. Call in now for a live exchange rate.

Elsewhere, the Canadian dollar also fell for most of the week against the US Dollar as concerns abound over the global economy’s slow recovery. Furthermore, Canada’s rate of inflation is predicted to show a slow down. The South African rand slipped by 1.5% on Thursday against sterling, hitting the lowest level for several months. Call in now to speak to a trader for a price.

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