Sterling appreciated by 0.7% against the euro yesterday as concern over the European debt crisis increased demand for the pound. Sterling also strengthened by 0.7% versus the US dollar. Despite these glimpses of strength, the pound is still suffering from last weeks’ one year low of $1.532/£1 and is increasingly under pressure from last week’s Bank of England minutes. The prospect of more monetary easing is likely to weaken sterling, making it less appealing for investors. Out today is Nationwide housing data which will indicate whether the price of housing has risen/ fallen in comparison to last year. Call in now for a rate.

In the Euro zone, the euro extended its losses against the US dollar after depreciating by 0.5%. The common currency also hit a decade low versus the yen. A key German Sentiment Survey came in higher than expected, but figures were still lower than last month. As Germany is one of the world’s largest exporters of manufactured goods, there is a slight worry that trading conditions may be slowing down. Whilst the euro made gains off this data, they were only temporary as there are severe concerns that the measures proposed from Sunday’s G20 meeting will not be enough to tackle the euro debt crisis. Investors expect a lot of volatility so call in now for a live rate.

In the US, the US dollar slipped 0.4% versus the yen and made slim gains against the euro. US new home sales data came in as expected but figures are still at a six month low. It has become evident that despite low mortgage rates, Americans are flocking towards renting or buying second hand homes which are much cheaper. These figures should not come as a surprise as homebuilder sentiment is also at record lows. Out today is US consumer confidence, this could cause significant movement so call in now for a quote.

Elsewhere, the Canadian dollar depreciated by 0.8% to the US dollar. This is largely due to investors now seeking refuge in the greenback. The Swedish krona on the other hand was one of the best performers compared to other major currencies, strengthening 0.9% against the US dollar. The Norwegian krone also rose 0.8% against the greenback. Call in now for a live rate.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/