Sterling strengthened by 0.4% against the US dollar yesterday hitting $1.6534/£1. Sterling was also helped by positive data that showed an improvement in British factory orders in August. Although this had minimal impact on the currency, had this come in lower, it is likely that it would have had a negative impact, pushing sterling lower. The fact that other currencies are not appealing to investors is helping sterling gain ground – especially against the euro and US dollar. UK data later on this week will include CBI retail sales and an estimate of second quarter GDP. If this data is good, we are likely to see sterling gain further. Take advantage and call in now for a live quote.

In the euro zone, the single currency rallied against the US dollar and sterling after stronger than expected German manufacturing data. Although a separate industry report indicated German investor confidence decreased in August, it was overlooked by investors. Europe’s debt and banking crisis is still at the forefront of many investors’ minds with speculation that the European Central Bank may soon have to adopt monetary easing of its own. Later on in the week we have German retail sales data as well as euro zone industrial new orders. Call in now for a live price to protect yourself from unpredictable currency movements.

In the USA, the US dollar weakened against a most currencies yesterday as manufacturing data from Germany and China came in better than expected. The dollar fell against the Swiss franc and New Zealand dollar. US new home sales in July came in lower than expected with purchases falling to 0.7%, the lowest level in 5 months. Investors are waiting for Friday as there is speculation that a key central banking retreat will see Federal Reserve Chairman Ben Bernanke announce a fresh round of monetary easing that would see the US dollar weaken. Call in now for a live price to avoid losing out.

Elsewhere, better than expected Chinese factory data slightly eased global worries and helped raise stocks which in turn helped global markets. The Australian and New Zealand dollar gained from this on improved risk appetite. South African bonds also strengthened for a seventh day with expectation that the central bank will push for an interest rate hike soon. Call in now for a quote.

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