Sterling rose against the US dollar yesterday hitting a high of $1.6520/£1 as markets became more and more concerned with turbulence in the financial markets and particularly the sovereign debt crisis. Sterling also made gains against the euro. Investors are currently viewing sterling as a ‘semi safe haven’ as it is perceived to be in a relatively good fiscal position in comparison to the US and Euro zone, but there are still concerns over the UK’s recovery. Today there is business activity data from the CBI and a member of the Bank of England speaks so ensure you don’t miss out and call in for a live exchange rate.

In the euro zone, the euro slipped marginally against the US dollar and trading was fairly flat with many investors sitting on the sidelines ahead of an important speech by Fed Chairman Ben Bernanke later this week. European shares dropped as investors became concerned that European officials are taking too long to resolve the sovereign debt crisis, with German chancellor Angela Merkel sinking plans for a single “Eurobond” over the weekend. Out later today there is a wide array of European data so call in now to make sure you don’t lose out due to adverse market movements.

In the USA, the US dollar weakened against commodity linked currencies yesterday on rumours that the US Federal Reserve will announce another round of emergency stimulus for the economy. On a more positive note, US stocks (particularly energy stocks) gained in early trading yesterday, making a comeback from a worrying four week decline. On Friday, there is a key meeting at Jackson Hole in the USA amongst central bankers and many market players are concerned that this will mean further stimulus being announced by the Federal Reserve. Call in now for a live price to avoid losing out.

Elsewhere, the Swiss National Bank tried to deter investors from purchasing the currency as the astronomic rise in demand for the Swiss franc impacts exporters. It has been rumoured that Japan is set to do the same to further weaken the yen. Oil prices dropped as Libyan rebels reached Tripoli overnight and despite continued fighting many feel that the end of the conflict is near. Call in now for a quote.

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