Sterling climbed by 0.7% against the US dollar as rumours the Swiss National Bank may raise its amount of sterling holdings increases. The pound however, fell by 0.4% against the euro after German parliament voted in favour of approving another Euro zone rescue fund. This week has shown significant signs that sterling is in fact being led around by other currency pairs which makes its movement difficult to predict. Data out yesterday showed UK house prices rose by 0.1%. According to Nationwide, house prices are likely to remain stable until the end of 2011. Call in now for a quote.

In the Euro zone, the euro rose by 0.6% versus the US dollar after German policy makers approved an expansion of the euro zone bailout package. The measure passed with 523 votes in favour and 85 against. Though it was a largely expected decision, tension was still high. Germany will now put up €211 billion instead of €123 billion. Though the common currency seemed to be going rather steady this week, we may see it strengthen further as many feel the correct measures to solve the crisis are finally being taken. Data yesterday showed Germany’s unemployment rate decreased and is at its lowest level in two decades. Out today are Euro zone unemployment figures. Call in now for a live rate.

In the US, the US dollar rose by 0.5% against the yen whilst it made slim losses versus the euro. There was some good news for the US yesterday with GDP figures showing the economy has grown 1.3% for the second quarter. Additionally, jobless claims decreased from last week. Despite this, the US dollar still slipped 0.2% against a basket of currencies. Many think that the appeal for the US dollar as a safe haven currency is being undermined by the possibility of further quantitative easing from the Federal Reserve next week. Out today are figures for US personal income and spending for the month of August. This may cause significant movement, so call in now for a rate.

Elsewhere, the Canadian dollar weakened against the US dollar yesterday as
the prices of commodities sold by Canada rose 0.5% from last month. Canada’s annual inflation rate reached 3.1% for August. Out today are Canada’s GDP figures. Call in now for a quote.

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