Sterling strengthened 0.4% versus the US dollar, reversing its previous 8 week low of $1.5914/£1. Sterling also rose firmly against the euro yesterday. These gains were largely due to the Bank of England’s (BoE) decision to keep interest rates on hold at 0.5% as well as sticking to its current asset- purchasing programme. Despite sterling’s rally yesterday, these gains are seen as temporary and definitely not a positive sign for UK economic recovery. The BoE’s decision indicates that the UK is still in no position to warrant an immediate move- something which is evident from this week’s weak data. Call in now for a quote.

In the Euro zone, the euro fell to a 2 month low against the US dollar and decreased 1% to sterling and the New Zealand dollar. Out yesterday was the long awaited European Central Bank’s interest rate decision that left the bench mark rate at 1.5% with no signs of increases in the near term. Though the euro may show signs of improving, as seen this week with better than expected retail figures for example, there are still fears of peripheral contagion and speculation that further volatility between the euro- dollar is to be expected. Protect yourself and call in now for a live rate.

In the US, the US dollar was strengthened against a basket of currencies. It was little changed against the yen and was up 1.1% against the Swiss franc. In a rousing speech last night, President Barack Obama launched his “American Jobs Act” and Fed Chairman Ben Bernanke hinted at further monetary easing in order to boost the stuttering recovery. It was made clear that the plan would not be funded by debt, but further efficiency savings. Call in now for a live quote as the package has boosted volatility.

Elsewhere, the rand advanced against all its major counterparts due to an increase in raw material prices. The rand strengthened for a third day in a row against the euro. Contrarily, after the Swiss National Bank’s decision to enforce a ceiling, the Swiss franc weakened against 16 major peers, falling to a record low this week against the euro. Out today are retail sales figures for China and unemployment data for Canada. This may cause significant movement, so call in now for a rate.

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