Sterling slipped against the US dollar yesterday after investors took profits from several days of gains and mixed data failed to stop concerns over poor UK economic data. An estimate of UK growth data for August showed industrial output exceeding expectations with a 0.2% increase but manufacturing growth showing a 0.3% contraction. Furthermore, comments from a Bank of England policymaker mean that UK monetary policy is set to remain loose for some time. Out later today we have the UK claimant count change, so call in now for a live exchange rate to avoid losing out to any adverse figures.

In the euro zone, the euro shed Monday’s gains against the US dollar as investors became concerned over a Slovak vote on changes to the European Financial Stability Fund appeared to hit snags. Also, whilst the ‘troika’ of the EU, IMF and ECB confirmed that the next tranche of Greek aid would be paid in early November, it warned that Athens had made patchy progress in meeting the terms of the bailout. Out today we have an array of industrial figures so call in now for a live exchange rate.

In the USA, the US dollar has stabilised over the past few days as fears over another recession subside following last week’s better than expected non-farm payroll data. The US dollar strengthened against the Swiss franc as investors moved out of the ultra safe Swiss currency.

Elsewhere, Turkey has made moves to defend the Turkish lira as investors pull back from emerging market stocks in the face of a European default. The Turkish central bank last week sold a record $1.1bn to keep the lira off record lows against the US dollar.

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