Sterling stayed firm against the US dollar and strengthened above €1.17/£1 against the euro despite a particularly downbeat statement by the Chancellor in his autumn statement to parliament. Growth forecasts for 2012 were downgraded to 0.7% from an estimated 2.5% in March and the Office of Budget Responsibility expects the economy to contract by 0.1% in the 4th Quarter of this year. Poor data in past weeks has also cemented the gloomy outlook for the economy with retail sales dropping by the highest level for 2 ½ years in October as consumers cut back on spending with inflation holding at more than 5%. Sterling recovered as most of the bad news was factored into the exchange rates. Call in now for a live exchange rate.

In the euro zone, the euro rose for a second day against the US dollar as there was speculation that the European Central Bank may lend money to the IMF in order to help Italy cope with the debt crisis. Italy’s borrowing costs have sky rocketed as investors have deserted the country in the wake of the recent crisis and left it having to pay more and more to borrow. Market sentiment yesterday seemed to suggest that European policymakers are taking action on the crisis, which helped support the euro.

In the USA, a rebound in consumer confidence in November also gave investor risk appetite a boost and saw the US dollar weaken off from recent highs. Out later today there is pending home sales and building approvals figures – both key pieces of data in the assessment of the US recovery’s prospects. Call in now to ensure you take advantage of any rate movements.

Elsewhere, the boost in risk appetite saw the commodity backed currencies strengthen against the US dollar and sterling. The Australian dollar surged by 2% against the US dollar before pulling back later in the day.

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Sterling recovered from a 7 week low against the US dollar on Monday as risk appetite improved across global markets. Rumours that European leaders were pushing towards more radical action on the euro zone crisis sparked by reports that the IMF was preparing an aid package for Italy saw a surge in demand for risk related assets. However, poor data from the UK put investor expectations of a recovery off course. Retail sales figures came in very low, showing a fall at the highest rate for 2 ½ years as consumers cut back spending. In addition, a report by the OECD stated that the UK will slip back into recession next year and that the Bank of England should increase the level of Quantitative Easing to £400bn. Today sees the chancellor’s Autumn report so call in now to avoid losing out.

In the euro zone, the euro recovered from 7 week lows against the US dollar as there was fresh hope of progress in the euro zone crisis as rumours circulated that the IMF was preparing an emergency aid package for Italy. In addition, with a European Summit next week and a European Finance Ministers meeting later today, many hoped to see progress towards more decisive action. The crisis continues to dominate currency movements, so ensure you protect yourself by calling and speaking to one of the team today.

In the USA, risk appetite was helped by reports of strong retail sales on “Black Friday” – the traditional post-Thanksgiving day of retail discounting similar to Boxing Day in the UK. In addition, there were reports that yesterday – dubbed “Cyber Monday” – would see record levels of online shopping ahead of Christmas, which helped investors feel marginally better and saw the US dollar slip off.

Elsewhere, the Australian dollar jumped by more than 2% against the euro, hitting a one week high and the New Zealand dollar gained by 2% as investors felt better that a solution to the Europe crisis was on the way. Call in now for a live exchange rate.

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Sterling strengthened from a 7 week low against the US dollar last week as risk appetite improved on Friday. Sterling held its ground against the euro as well. The big event of the coming week is set to be the Chancellor’s autumn statement, released tomorrow. We are likely to see George Osborne reaffirm the government’s commitment to cutting the deficit, but the main focus is expected to be a reduction in growth forecasts for next year. The EU crisis is expected to have a knock on effect and see the UK skirting recession next year – all of which could have an impact on sterling. Other key data released this week includes UK manufacturing, mortgage lending and consumer confidence. Call in now for a live exchange rate.

In the euro zone, the main news of last week was Germany’s ‘failed’ bond auction in which they failed to sell the full allocation of bonds on offer. We have November’s EU summit this week and with the lack of progress made in the last month over a credible plan to solve the crisis, there will be a lot to talk about. German and French leaders have come under particular pressure and any failure to address market concerns over the situation will heighten market tensions. Ensure you speak to one of the team to avoid losing out.

In the USA, the US dollar continues to maintain its position as the only real safe haven currency and as such is particularly strong at the moment. Last week’s ‘Black Friday’ showed reportedly much higher sales than in the previous year and as a result, investors feel good about retail sales in the country and the prospects for recovery. Later this week we have figures on payroll and manufacturing which could sink any optimism so call in now for a live exchange rate.

Elsewhere, the Swiss franc benefited on Friday on rumours that the Swiss National Bank would increase the currency peg floor to €1.25 against the euro. However, the SNB is likely to wait for any developments from the EU summit before making any decisions. Call in now for a live price.

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Currency note 24th November 2011

Important notice: Today is Thanksgiving (a public holiday) in the USA and as a result, US dollar payments will be delayed by one day as US routing banks will be shut. Please allow an extra day if you are paying suppliers in US dollars. This may also impact other currency payments so bear this in mind.

Sterling fell to a further 6 week low against the US dollar yesterday, falling below $1.55/ £1 following steep drops in the prices of riskier currencies/ commodities. A raft of poor data from the euro zone saw investors pull back from positions in riskier positions. With sterling seen as a relatively riskier option to the US dollar, the pound has come under pressure as the European crisis intensifies. The pound wasn’t helped either by the Bank of England’s minutes that showed policymakers unanimously voting for no change to monetary policy. One positive was that sterling strengthened against the euro. Call in now to ensure you take advantage.

In the euro zone, the euro tumbled yesterday following poor demand for German bonds. Germany is seen by many as the ‘safe haven’ of the euro zone and the lacklustre bond auction yesterday may be the first signs of the markets beginning to question Germany’s ability to handle the European crisis. In addition, data showed that industrial orders and purchasing figures fell in the region, signalling an impending recession. Call in now for a price to make sure you don’t lose out.

In the USA, the US dollar strengthened to the highest level against the euro since early October as investors became more and more concerned over the impact that the European debt crisis was having on France and Germany – the region’s largest economies. Markets are becoming more and more concerned globally and as such are seeking the safe haven of US dollars. Ensure you protect yourself by speaking to one of the team today.
Elsewhere, Chinese data released yesterday showed a sharp contraction in manufacturing activity. The figures shocked many who had been relying on China to drive the global recovery forward.

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Important notice: Thursday is Thanksgiving (a public holiday) in the USA and as a result, US dollar payments will be delayed by one day as US routing banks will be shut. Please allow an extra day if you are paying suppliers in US dollars.

Sterling fell to a 6 week low against the US dollar yesterday as riskier currencies became hampered by the failure of US politicians to reach agreement on spending cuts and concerns over the European debt crisis continued to wreak havoc. Whilst the pound did start to recover, it also hit a 3 week low against the euro as banks allegedly repatriated funds in order to start recapitalising. In terms of data, we have the Bank of England’s minutes released later today which are set to show that there is potentially further Quantitative Easing on the way as the UK economy struggles with high inflation and low growth. Call in now for a live price.

In the euro zone, the euro slipped yesterday against the US dollar as rumours surfaced that Belgium and France were in fresh talks regarding the existing deal for Dexia – the first bank to be bailed out in Europe following the euro zone crisis. The concerns were over the fact that France could be taking on more and more liabilities – especially given the recent warnings over France’s credit rating in recent weeks. Out later today there is a wide array of economic activity data so call in now to ensure you don’t lose out.

In the USA, US GDP growth figures were revised downwards yesterday to 2% quarter on quarter which saw risk appetite decrease and increased demand for the US dollar. With the US super committee failing to reach an agreement on spending cuts, there is a significant risk that we could see another credit rating agency downgrade the US credit rating. Get in touch now to avoid losing out.

Elsewhere, sterling surged against the South African rand yesterday hitting the highest level since August 2009. Riskier currencies like the South African rand have taken a hit recently as investors pull out of riskier positions. Call in now to take advantage of better rates.

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Sterling fell to the lowest level against the US dollar for 6 weeks yesterday as investors moved away from riskier assets, but sterling remained supported against the euro given concerns over euro zone stability. With a fragile UK economy and the Bank of England’s minutes release tomorrow that are expected to show the Bank’s readiness to deploy further Quantitative Easing, sterling is set to continue to come under pressure against the US dollar. Some analysts are predicting that sterling will fall to $1.53/£1 by the end of the year as the recovery slows. Figures yesterday showed that UK shopper numbers fell by the fastest rate since last year’s heavy snow as consumers tightened their belts. Out later today there is key data on public sector borrowing that could cause some volatility. Call in now to ensure you don’t lose out.

In the euro zone, fears over the debt crisis continued to cause issues with stock markets falling to 6 week lows as credit rating agency Moody’s issued a warning over France’s credit rating as a result of the country’s exposure to Greece and Italy. Comments from ‘guru’ investor Warren Buffett didn’t help either – the ‘Oracle of Omaha’ stated that he couldn’t see how and when the European debt crisis would end. Out later today there is consumer confidence data for the region so call in now for a live exchange rate.

In the USA, the US dollar surged against its counterpart currencies as investors shunned riskier assets and the debt crisis raged on. US stock markets fell yet again, with the S&P 500 slipping below the 1,200 level for the first time since October. Out later today there is US GDP data so call in as this could cause some movement.

Elsewhere, a swift recovery in Japanese manufacturing supply chains helped the economy recover from a post-quake recession and grow by 1.5% in the 3rd Quarter. However, record highs on the Japanese yen have seen exports drop by 3.7% despite intervention by central authorities to weaken the yen.

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Sterling strengthened against the US dollar on Friday as investors who had placed bets against sterling reversed them ahead of the weekend. In addition, there was speculation that the ECB would start lending to the IMF in order to bail out troubled European countries. Sterling slipped slightly against the euro as a result, but this was due to the fact that the pound has now become some what of a safe haven currency in the face of a growing crisis in the euro zone and as a result, sterling is likely to gain against the euro if investors become concerned. This week, we have the Bank of England’s meeting minutes and the 1st revision of 3rd Quarter GDP – both of which could cause significant volatility.

In the euro zone, it was yet another volatile week, with a sharp rise in government bond yields across the board demonstrating the ‘contagion’ that so many analysts have feared for some time. One piece of relatively positive data over the weekend was the news of the crushing election victory by Spain’s centre right. The strong majority should give the new government the ability to push through the tough austerity measures required and to (hopefully) keep the country’s bond prices down. Call in now for a live exchange rate.

It is a potentially big week in the USA, with the looming deadline of the so-called ‘super-committee’. This was a bi-partisan body set up in the wake of the debt ceiling debacle in August to agree a further $1.2trn of spending cuts in order to avoid automatic cuts in 2013. Given the fractious nature of US politics, if the talks do breakdown it could cause some issues in the markets yet again. There is preliminary GDP growth figures released later in the week so call in to ensure you don’t lose out.

Elsewhere, the resurgence of violence in Egypt has put many analysts on edge. The lack of political reform since the uprising earlier this year has caused some to worry about the situation in the region. Call in now for a live rate.

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Sterling strengthened yesterday after stronger than expected retail sales figures provided some rare positive news on the UK economy. Figures showed that retail sales increased by 0.6% in October – beating expectations for a fall. Despite this rare piece of good news, many analysts feel there are still significant risks facing the UK economy – especially heading into the new year when growth can stall after Christmas. Sterling should however remain supported against the euro given the concerns over risks of contagion in the euro zone. Elsewhere this week, inflation fell and the number of new people claiming unemployment benefits fell significantly on last month. Call in now for a live exchange rate.

In the euro zone, it appeared that the European debt crisis was close to claiming its 3rd victim in as many weeks. Spain’s borrowing costs jumped yesterday, with the country having to pay 6.975% on new borrowing yesterday 3 days ahead of an election that is expected to see the ruling socialist party toppled. Bond yields in many other countries in the region also suffered with many analysts predicting that markets are now pricing in a break up of the euro zone. Call in now for a live rate as there is significant volatility.

In the USA, stock markets fell for another day on Thursday as fears over the euro zone crisis causing a global liquidity crisis negated recent positive data showing a 7 month low for new jobless claims and an increase in permits for new homes. Many had felt that these positive signs were a sign that the US recovery was under way, but the gathering storm in Europe is a worrying sign for the global recovery. Ensure you take advantage of any volatility and speak to one of the traders today.

Elsewhere, the Japanese yen strengthened to a 2 ½ week high against the US dollar as concern over the euro zone saw investors seek refuge in the safe haven currency. This was the lowest level since the Japanese intervention of October 31st. Markets are very jittery at the moment in relation to the euro zone, so call in now to ensure you don’t lose out.

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UK unemployment continues to grow hitting 17 year highs as the private sector is unable to take up the slack from those being made unemployed in the public sector. Unemployment for the under 25’s is over 20%. We also had yesterday the Bank of England forecasts for the UK economy which reduced growth expectations over the next 9 months to nil as a result of the problems in the euro zone which is the UK’s main export market. Further quantitative easing is being talked about which meant that sterling gave back its morning gains against the euro in the afternoon. One positive from the BoE was their expectation that inflation would be less than 2% by the end of 2012. But they have been wrong before. So the UK is not in a great position economy wise. Call in now to get a rate to minimise risk in these difficult times.

Business confidence in the euro zone begins to ebb away as the markets wait for a comprehensive and believable plan with regard to restructuring of their debts, bank and government. Yields on Italian government debt hovered around the 7% level which given that this seemed to be dependent on buying by the European Central Bank is not comforting. So as uncertainty reigns and I suggest you give us a call to get the latest update.

The US$ continues to benefit from its safe haven status and strengthen against sterling. But the US economy is also suffering from the uncertainty in the euro zone and expectations for US company performances such as the banks are beginning to be downgraded.

The commodity backed currencies held their own yesterday. The euro zone crisis is having an effect on business confidence worldwide and although still growing the Far East is still dependent on what happens in the northern hemisphere.

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UK inflation data for October fell by 0.2% from the previous month. Trouble is at 5% it is still way above the Bank of England’s target rate of 2%. Expectation is that it will fall in the new year as last January’s VAT increases flow through. Problems in the euro bond market continue to trouble sterling against currencies other than the euro as a significant proportion of the UK’s trade is with the euro zone. Today we have the unemployment figures which are unlikely to make happy reading. Unemployment for the under 25’s is of great concern as jobs have dried up for this age group. Exchange rates continue to be volatile so call in for a rate now.

The euro zone problems continue. Confidence in euro zone bonds of all countries apart from Germany’s is slipping away which means that the problems of Italy and Greece could spread to other countries such as France and Austria which in theory have AAA rated bonds. Business confidence continues to wane which means that given the size of the euro zone business confidence world wide is affected. Urgent action is required. Expect continued volatility and call in now to reduce your risk.

The US$ is the “go to” currency in these uncertain times as risk aversion heightens and its safe haven status is much sought after. Sterling has lost a couple of cents against the US$ since the start of the week and it is difficult to see this momentum changing in the near term even though economic conditions in the US are far from rosy.

Commodity backed currencies have gained ground against sterling which is slightly perverse given increased risk aversion. I think it highlights how dependent the UK economy is on the euro zone whereas the commodity backed currencies are tied to China and its on-going growth.

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Sterling fell against the US dollar on Monday, mirroring the euro’s drop against the US currency as concerns over the euro zone’s huge debt problems continued to concern investors globally. Sterling – whilst a preferred option to the euro – is still seen as a riskier investment given the likelihood of further quantitative easing and a clouded outlook for the recovery. It was a relatively quiet data for data, with most investors holding out for the Bank of England’s quarterly inflation report, released on Wednesday. Markets will be looking for any signs of further downside risks for sterling and some analysts expect the UK’s growth outlook to be cut. Employment and retail sales figures later in the week could also weigh on sterling’s prospects – call in now for a live exchange rate to avoid losing out due to adverse market movements.

In the euro zone, there was a slight glimmer of hope yesterday after it was announced over the weekend that former European Commissioner Mario Monti would head up a new Italian government in order to end a crisis that has engulfed the whole euro zone. However, this optimism was short lived as Italy paid a record level of interest on a new 5 year bond auction and industrial production in the region recorded its biggest drop since the beginning of 2009, falling by 2%.

In the USA, stock markets fell as investors became unnerved by the Italian bond auction and sought safer havens in alternative asset classes. US government bond prices rebounded as markets looked to them as a safe haven. With the Swiss franc and Japanese yen no longer a viable option for investors after government intervention, the US dollar has become the only real ‘go-to’ on this front.

Elsewhere, the price of gold dropped on concerns over the euro zone crisis. It is generally indicative of the level of concern that if gold prices are dropping, investors really are worried. Around the time of the Lehman Bros, gold fell significantly. This is an interesting one to track with regard to market sentiment.


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Sterling strengthened against the US dollar on Friday as risk sentiment improved following expectations that Italy would push through austerity measures. In addition, positive US data helped risk appetite as investors felt happier about the global recovery. The recent volatility in the euro zone has also seen demand for UK government bonds increase and this should keep sterling relatively well supported against the euro – despite lacklustre domestic data. Out later this week we have the Bank of England’s quarterly inflation report which could be relatively downbeat and outline further quantitative easing dependant on the situation in the euro zone. In addition, there consumer confidence, retail sales and unemployment figures so call in now for a live exchange rate.

In the euro zone, whilst we start the week with new governments for both Greece and Italy, long term structural reform is needed in the region in order to improve the region’s prospects. Both interim governments are however unlikely to be able to push forward with the ‘harder’ spending reforms and as a result we could see elections early next year. In terms of data, it is a quiet start to the week followed on Tuesday by a whole raft of 3rd quarter GDP figures that are expected to show a significant drop in output in the last few months. Call in now for a live exchange rate.

In the USA, figures on Friday showed that US consumer confidence had improved to the highest level in 5 months, with more Americans feeling better about the economy. In terms of data, it is a relatively busy week with wholesale price inflation, retail sales figures and consumer price inflation. The US dollar has been incredibly sensitive to the situation in the euro zone so call in now for a live exchange rate.

Elsewhere, the minutes from the Reserve Bank of Australia’s last meeting are released later today. Following the last meeting in which interest rates were cut by 0.25%, the minutes should give an interesting idea of what would prompt another cut in rates. Call in now to protect yourself.


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Sterling dropped from earlier highs against the euro and slid lower against the US dollar after concerns over the euro zone led investors to pull back from exposure to riskier currencies. As had been expected, the Bank of England voted to keep interest rates on hold and keep the asset purchase programme on hold. Whilst this was a key event of the week, markets focussed much more on developments in the euro zone and more or less ignored the Bank of England meeting. It has been a turbulent week on the markets, with sterling hitting a 10 month high against the euro and numerous clients taking advantage of the better rates, now is a great time to call in and speak to one of the team about fixing in preferential rates.

In the euro zone, to say it has been a week of panic is an understatement. In the course of 10 days we have seen the leaders of 2 European countries ousted as they lose their majorities and the focus of the crisis shift rapidly and detrimentally to Rome. Italian borrowing costs shot through the roof – well beyond what are seen as ‘sustainable’ levels leaving many expecting the country would need a bailout. However, the country’s debt is too large to be bailed out by the EU – especially as Italy is meant to be contributing to the European Bailout Fund. Have we seen the beginning of the end for the euro? I’m sure we will know soon enough. Call in now for a live exchange rate.

In the USA, the US dollar has been the subject of ‘risk averse demand’ i.e. investors have been pulling out of high risk holdings and piling funds into the safe haven of US government bonds and cash. This has seen demand for US dollars jump and as such, sterling has had a poor week against the US dollar. Out later today there are consumer sentiment figures and the US markets are shut for Veteran’s Day which could increase volatility.

Elsewhere, sterling has had a good week against the ‘commodity’ currencies as investors pull out of riskier trades and back into the relative safety of the pound. In all this market turmoil and panic, I hope you can take a moment to reflect on this Remembrance Day Friday. Have a great weekend!


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Sterling hit the highest level against the euro for 8 months, but fell sharply against the US dollar after a torrid day on the markets which saw almost every major stock exchange sink deeply into the red as investors ran to safer assets. After a brief rally following the announcement of Silvio Berlusconi’s resignation, Italy’s borrowing costs surged to record levels as bond traders shunned the country’s debt and fled to safer options. Borrowing costs (yields) that are above 7% are generally seen as unsustainable and as such markets now expect Italy to need a bailout. This sent financial markets into a tail spin this afternoon and the UK’s prospects – whilst better than the euro zone – look bleak if the major trading partner of the UK grinds to a halt. Out later today we have the Bank of England’s monthly meeting so call in now for a live exchange rate.

In the euro zone, one of the major drivers of yesterday’s major movement on bond and currency markets was the announcement by euro zone officials that there were no plans for a financial rescue of Italy, which sent Italy’s borrowing costs skyrocketing as investors lost confidence that they would be repaid. The past 10 days is a reminder of what so many had feared – contagion. Greece was plastering the headlines last week and within 3 days, Italy is now the epicentre of the crisis. The euro sank to the lowest levels against the pound and US dollar in months. We are coming closer and closer to the fabled €1.20/£1 so call in now to take advantage if we see things move.

In the USA, stock markets tumbled on concerns over the European debt crisis with Italian borrowing costs seen as being at tipping point. Investors scrambled for US government bonds and cash which saw the US dollar strengthen significantly over the day – by over 1% against the pound. Call in now for a live price.

Elsewhere, China's annual inflation rate fell to 5.5% in October from 6.1% in September for a third straight month of decline from July's three-year peak and Premier Wen Jiabao said prices had fallen further since then. This fuelled expectations that China may start to loosen monetary policy as exporters feel the impact from slowing global growth. Call in now for a rate.


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Sterling strengthened against the euro and US dollar yesterday after solid economic data in the UK and further turmoil in the euro zone left the pound looking relatively good to investors. The National Institute of Economic and Social Research released data yesterday that showed that UK economic growth held steady at 0.5% in the 3 months to October. The figures helped calm fears that the economy could be heading back for recession. With the focus on Italy, the UK is perceived to have a much tighter grip on austerity measures than many of its counterparts across the globe. This is helping to boost demand for sterling so call in now for a live exchange rate.

In the euro zone, Rome has taken over from Athens as the focus of the euro zone debt crisis. Italian borrowing costs continued to surge, which means that the country could require a bailout that Europe cannot afford. Italian Prime Minister Silvio Berlusconi lost his parliamentary majority in a budget vote yesterday increasing pressure on him to resign his position. If he does resign, we could see the euro regain ground against the US dollar and sterling as many feel a change of leadership is what is needed. Call in now for a live exchange rate.

In the USA, stock markets were unchanged yesterday following the Italian vote that left the political situation looking rather cloudy in Europe – especially given the size of repayments that Italy has to make next year and the rate at which its borrowing costs are shooting up. Elsewhere, economic confidence dropped which is to be expected. Out later today, Fed chairman Ben Bernanke speaks so call in now for a live rate.

Elsewhere, the Canadian dollar fell overnight against its major counterparts as investors pulled back holdings in the riskier currency. Market turmoil caused by the euro zone is good for sterling against the more minor currency pairings e.g. the South African rand. Call in now to ensure you take advantage.


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Sterling fell off earlier gains against the euro on Monday as it tracked the euro’s marginal gains against the US dollar. Sterling was looking fragile against the US dollar for much of the day as investors preferred the safe haven of the US currency on concerns over the outlook for the UK recovery. The pound should remain strong against the euro as investors look for an alternative to the euro during the European debt crisis – especially given moves made last week to start cutting interest rates in the region. House prices in the UK showed signs of recovery yesterday and out later today we have manufacturing and industrial production figures so call in now for a live exchange rate.

In the euro zone, European shares and the euro made a slight recovery as news emerged over the weekend that the political turmoil in Greece seems to have been resolved with the announcement that a new ‘government of national unity’ would be formed and the now infamous PM George Papandreou would resign. Elsewhere though, yields on Italian bonds – i.e. the interest rate that the nation needs to pay to borrow – hit record highs yesterday as investors became more and more concerned that the country would fail to implement austerity measures. Today sees a crucial confidence vote for Silvio Berlusconi. Call in now for a live exchange rate.

In the USA, the US dollar continues to benefit from demand for safe haven assets as investors shy away from the perceived ‘riskier currencies’. Out later today there is some economic optimism data which will give an insight into the economic prospects however the mainstay of any US dollar movement is likely to be related to the euro zone.

Elsewhere, Chinese manufacturing figures expanded in October which was a positive sign that the world’s economic powerhouse is not being unduly impacted by the euro zone crisis. Positive data in China is linked to stronger ‘commodity linked’ currency rates so call in to ensure you don’t lose out.



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Sterling fell against the US dollar on Friday as investors looked to the safe haven US dollar on fears over the euro zone crisis, with investors particularly worried about a confidence vote in Greece. Against the euro, sterling strengthened and held above €1.16/£1. Furthermore, analysts expect sterling to gain further ground as interest rates in the euro zone start to come down. The Bank of England meets later this week, but the outlook for monetary policy is looking relatively stable in the UK versus Europe, which could bode well for sterling against the single currency. Industrial activity measures could potentially be a slight worry this week and as such we could see a contraction in growth heading into the beginning of 2012. Later in the week we have wholesale price inflation figures so call in now for a live exchange rate.

In the euro zone, it was a turbulent week last week with the shock announcement of a referendum initially and with the announcement over the weekend that a new ‘government of national unity’ will be formed and Prime Minister George Papandreou will step down when the deal is finalised. Over the weekend it was also announced that the European Central Bank could stop buying Italian bonds if it concludes that the country is not adopting the necessary austerity measures. It is a relatively quiet week for data, but there is a meeting of European Finance Ministers today that could see some movement. Call in now for a live exchange rate.

In the USA, the US dollar strengthened against ‘riskier’ assets on Friday as investors positioned themselves against potential losses ahead of Friday night’s vote of confidence in Greek PM George Papandreou. The US currency is experiencing strength related to a lack of confidence in the global recovery and could yet see further strength in the coming weeks so call in now to avoid losing out.

Elsewhere, there is a wide array of data released in China which many analysts expect will lead to the Chinese authorities removing some of their more restrictive policies. In particular, inflation is expected to drop and industrial production is also set to fall. Exports to Europe only account for around 15% of Chinese exports so the euro zone crisis is not expected to have too much of an impact. Call in now for a live exchange rate.

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Sterling gained against the euro and recovered against the US dollar yesterday, spurred on by growing turmoil in the euro zone over Greece and a surprise move by the European Central Bank to cut interest rates. It has been a mixed week for data in the UK this week with better than expected growth and construction numbers, but poor services and manufacturing data. However, the main driver of sterling this week has been the ongoing crisis in the euro zone and the shock announcement on Monday that Greece will hold a referendum on the bail out. Call in now for a live exchange rate and take advantage of the volatility.

In the euro zone, Monday’s shock announcement by the Greek Prime Minister George Papandreou sent panic through financial markets as a ‘no’ vote means that Greece would default on a large bond repayment in December and cripple financial markets. Whilst this was called off on Thursday, there is further political turmoil expected today with a strong chance that the PM will lose his majority. Concerns over high inflation in the region switched to concerns over growth yesterday as the new ECB President Mario Draghi announced his arrival at the ECB with a 0.25% rate cut. Volatility is set to remain high – call in and set a target price with on of the trading team.

In the USA, you might be forgiven for thinking that Europe has been the main focus for several weeks, but today sees the monthly release of key US data in the form of the ‘non-farm payrolls’ – seasonally adjusted employment figures that can have a large impact on economic expectations. Analysts are expecting a slight drop in the number of jobs added and expect the unemployment rate to remain at 9.1%. Call in now for a live exchange rate.

Elsewhere, sterling has made significant gains against ‘riskier’ currencies such as the South African rand and Scandinavian currencies as investors pull out of risky trades in the face of the European crisis. If you have Australian or New Zealand dollars to buy too, this is potentially a good time to be thinking about doing just that. Have a great weekend.


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Sterling regained some of the ground it lost against the US dollar on Tuesday as the surge in demand for safe haven assets waned, however the pound failed to capitalise on its move towards €1.17/£1. UK construction activity figures beat expectations, showing expansion against an expected decline. This helped investors to have more faith in the UK recovery, but it is still very fragile and subject to further shocks in future. Out later today we have UK services sector activity which is a key figure – GDP growth numbers showed an expansion in this sector so call in now to ensure you don’t lose out if the data undershoots expectations.

In the euro zone, with the G20 meetings getting underway in Cannes today there will certainly be a lot to talk about. Following the shock announcement by Greek PM George Papandreou that Greece will hold a referendum on the EU bailout, it was announced last night that this is to be held on the 4th December. Greece has €8.1bn worth of bond redemptions due on the 19th December and lacks the funds (without the bailout) to repay these. If the country votes no, it will not receive any funding and default. This has the potential to cause chaos in the markets – ensure you call in to protect yourself over the coming months.

In the USA, the US dollar continues to trade in response to the global risk sentiment and the currency made modest gains following on from the Federal Reserve’s FOMC statement which was broadly negative in its tone. There is key data released today so call in now for a live price.

Elsewhere, Scandinavian currencies and other risk based currencies have suffered as investors look elsewhere to invest on the news of the potential euro break down. Sterling has made gains across the board so call in now to speak to a trader for a price.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/

Sterling surged to a one month high against the euro but slid against the US dollar as calls from Greek PM George Papandreou for a referendum on the EU bailout sent markets into chaos. Sterling fell just short of €1.17/ £1 as it hit €1.1697/£1 on the news. There was mixed data released in the UK yesterday, with manufacturing activity posting a sharp contraction against expectations leaving investors concerned over the UK recovery. UK GDP growth figures came in above expectations, showing 0.5% growth in the last quarter against an expectation of 0.4% however the data is notoriously inaccurate and subject to change at a later date. Yesterday is a prime example of why it is important to put a currency strategy in place to take advantage of large swings.

In the euro zone, Greek PM George Papandreou sent markets into a tail spin yesterday morning after calling for a referendum on the Greek bailout package. The implications of a potential ‘no’ vote are the likely bankruptcy of Greece and the country’s withdrawal from the euro – both of which are a worrying prospect. The euro did begin to recover slightly against the US dollar after Nicolas Sarkozy and Angela Merkel said they were committed to the deal agreed at last week’s EU summit. Call in now for a live exchange rate.

In the USA, stock markets took a hammering yesterday as the shock announcement sent investors fleeing to safer assets. The US dollar was a major beneficiary of the sudden flight to safety and it made gains against most currencies – especially with the Japanese yen and Swiss franc effectively no longer safe haven currencies due to government intervention. The US dollar gained by around 2 cents against sterling. Call in now for a live exchange rate.

Elsewhere, the Reserve Bank of Australia cut interest rates by 0.25% overnight into yesterday morning which helped to see sterling make gains against the currency. Sterling also strengthened against other ‘riskier’ currencies, breaking above ZAR 13.00/ £1 and NZ$2.00/ £1 against the South African rand and New Zealand dollar.

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Sterling hit the highest levels against the Japanese yen for 2 months after the Japanese authorities intervened to drive the yen lower. Against the US dollar, sterling came under pressure but held on to gains made on Friday and finished the day flat. The big move was against the euro, with sterling surging by close to 2%, hitting a high of €1.1594/£1 after yields (i.e. the borrowing costs paid) on Italian bonds surged – an indicator of investor fear over a potential Italian default as the country struggles to implement tough spending cuts. Out today there is house price data and the first estimate of 3rd quarter GDP for the UK so ensure you don’t lose out and call in to speak to one of the team.

In the euro zone, the euro fell against both the euro and US dollar on poor data and surging Italian bond yields. Figures showed Italian and European unemployment creeping up and lower than expected German retail sales figures. Data has been poor in the last month and many expect the European Central Bank’s meeting to be the main focus later in the week. If the ECB fails to take a looser stance with monetary policy we could see the euro lose ground. Call in now to take advantage of any favourable currency moves.

In the USA, the US dollar jumped to a 3 month high against the Japanese yen following Japan’s intervention in the currency markets over the weekend. Analysts estimated that the Bank of Japan intervened with a record $65-75bn in order to protect domestic exporters from record highs on the currency. The focus for the USA this week continues to be the Federal Reserve’s meeting that starts today. The Fed could potentially implement further monetary easing in the coming months, which could see the US dollar fall.

Elsewhere, tensions between China and the USA took another step yesterday as the USA accused China of failing to implement commitments over the opening of its financial services markets that it made 10 years ago in order to join the World Trade Organisation. The USA accused China of deliberately taking an unduly long time to approve requests by US companies to open branches in the country.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/