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.

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