Sterling had a turbulent day yesterday hitting a low of €1.1267/£1. Sterling also depreciated against the US$. This was largely due to a decrease in the UK’s service sector activity over the last three months. Moreover, July consumer credit data showed an unexpected slow down in borrowing; alongside UK net mortgage lending remaining at a standstill. This data continues to demonstrate that economic recovery in the UK is far from robust. As a result, it makes the pound vulnerable and less appealing to investors. Out on Thursday is Nationwide House Prices data for August. Call in now for a quote.

In the Euro zone, the euro fell 0.5% against the US$ and against a majority of its counterparts as there is increasing speculation that the European Central Bank has terminated interest rate hikes for this year. Yesterday’s data showed a vigorous decline in Euro zone consumer confidence for a sixth time. This result is largely due to increasing fears of governments’ inability to repay their debt. Furthermore, Italian bonds declined for a seventh day. Out today is German Retail and Unemployment data. Call in now for a live price to avoid losing out.

The US dollar fell to a session low versus the yen as consumer confidence in the US plunged in August, hitting the lowest point in almost two years. Due to this, Americans are becoming increasingly concerned with future job prospects- a sentiment similarly shared by President Obama who recently recruited a top labour economist to tackle the battle against the US’s high level of unemployment. U.S stocks also fell yesterday whilst another report demonstrated a fall in home prices for the second quarter. Out today is data for US Factory Orders in July. Call in now for a live exchange rate.

Elsewhere, the yen benefited from bad U.S consumer confidence data by gaining 0.2% to the US $. On the contrary, Australia saw positive data yesterday as there was a 1% increase in building activity for the month of June. Ensure you protect yourself by speaking to one of the team here about your options.

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