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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