Sterling regained ground versus the US dollar after hitting a session low of $1.574/£1. The pound also rose by 0.7% against a weaker euro. This is largely due to investors still uncertain on whether EU policy makers are taking sufficient steps to tackle the Euro zone debt problem. Despite sterling making these slim gains, there is still growing sentiment that another round of quantitative easing will be introduced by November to help revive Britain’s economy. Out this week are The Bank of England’s minutes. Call in now for a rate.

In the euro zone, the euro was down 0.7% against the US dollar after European finance ministers provided no indication of giving extra support to lenders. German Chancellor Angela Merkel also reiterated her objection to euro bonds on Friday. On the other hand, there is increasing speculation that all efforts are being undertaken by euro zone governments and we could see the common currency stabilise. Out this week we have German Producer Prices for the month of August. Things may become unpredictable so call in now for a live exchange rate.

In the US, the dollar rose 0.1% against the safe-haven Japanese yen. However, investors are still reluctant to take long positions in the dollar particularly ahead of the Federal Reserve’s September policy meeting scheduled for tomorrow and Wednesday. Investors are expecting the Federal Reserve to intervene in some form to stimulate the sluggish US economic growth. Many think borrowing costs for bonds will be kept low so as to support the US economy. Out this week there are US building home permits and home sales data. Call in now for a quote.

Elsewhere, the rand declined for a second week in a row and fell 0.9% to the US dollar. This is largely due to the deepening of the euro zone crisis which is slowing global economic growth. If the rand continues to decline, it will also eliminate the possibility of a cut in interest rates. On the contrary, Canada’s dollar made a weekly gain versus all of its 16 trading peers. There are bets that the Canadian currency will appeal to a number of investors during turbulent moments in the market. Call in for a live rate.

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