Sterling gained against the US dollar on Friday afternoon as investors took profits from the US currency’s earlier rally, but the pound remained close to a one year low on concerns over the global economic outlook. The pound also strengthened against the euro on speculation that Greece will not be able to secure another bailout package. These gains however were temporary as concerns over global economic growth continue. Data on Friday showed mortgage approvals in the UK increased by 14% from last year, with lenders granting up to 35,226 new loans to purchase homes. Out this week there is more housing data which may cause significant movement so call in now for a live rate.

In the Euro zone, the euro rose by 0.6% against the US dollar rebounding after an 8 month low. This was largely due to G20 policy makers’ meeting in Washington where they agreed to take the necessary measures to prevent the European debt crisis from undermining the financial market and the banks. Though this may have helped the common currency on Friday, investors are still uncertain that the measures put forth will be able to contain the debt crisis from spreading, not only to peripheral countries, but on a global basis. Reports over the weekend suggest that euro zone leaders are ready to throw trillions of euros at the debt crisis – call in now for a live exchange rate.

In the US, the US dollar extended losses versus sterling and the euro as market players placed bets on the greenback’s rally on Thursday. The US dollar also weakened against the yen trading at almost post World War II lows. The US dollar-yen relationship is a good indicator of how much or how little safety investors think they need. US stocks plunged again on Friday as there are growing fears of global economic stagnation. Out tomorrow is US consumer confidence data which will show how comfortable the public are with their spending. Call in now for a rate.

Elsewhere, the rand weakened 4.5% against the US dollar on Friday. South Africa’s central bank also left lending rates at a 30 year low of 5.5% to slow down any further price pressures. The yen on the other hand is strengthening on the back of economic turmoil. In fact, the yen has appreciated 11.4% in three months. Investors seek safety in the yen due to its surplus on current accounts. Call in now for a rate.

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