Sterling strengthened against the US dollar yesterday, following gains by the euro, as a rebound in global stock markets increased risk appetite and boosted confidence in sterling. There was a cautious optimism amongst investors that European policymakers were putting together a more solid plan to resolve the debt crisis, however, with nothing concrete announced, this was merely speculation. Sterling was up by 0.7% against the US currency and relatively flat against the euro, having earlier broken above the €1.15/£1 level. UK retail sales were disappointing, coming in at a 16 month low. Out today we have house price figures so call in now for a live exchange rate.

In the Euro zone, the euro rose against the US dollar on Tuesday. This was largely due to optimism that European policy makers are coming close to taking control of the on going debt crisis. There is speculation that the measures put forth have eased fears of a euro zone collapse. Data for German consumer confidence came in better than expected, despite fears of a looming recession and collapsing euro. The situation is very complex and as a result, no magic bullet will resolve the situation. Consequently, policymakers are locked in debate as to the best way forward. Call in now to ensure you don’t lose out.

In the US, the US dollar extended gains versus the euro and the yen as investors are becoming increasingly optimistic that a solution for the euro debt crisis is near. The US dollar fell by 0.7% against the common currency, but rose by 0.4% versus the yen. Data yesterday showed US consumer confidence edged slightly higher, however, it remained relatively unchanged since August. These figures suggest spending in the US is fragile and the economic environment is still weak. Out today are US durable good orders for August. Call in now for a live rate.

Elsewhere, the Swiss franc declined versus the US dollar due to a drastic drop in Switzerland’s consumer demand which almost hit a 2 year low in August. There are concerns that Switzerland’s economy is slowing down due to the franc’s increase in value which has in turn hurt the nation’s demand for exports. The yen on the other hand has strengthened 6% this year. Out today are figures for Japan’s large retailer’s sales, this may cause significant movement so call in now for a quote.

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