Sterling fell against the US dollar yesterday, trading within reach of an 18 month low against the US currency as investor concern over euro zone credit rating downgrades impacted on risk appetite and saw safe haven demand for US dollars. Sterling stayed well supported against the euro as issues with European downgrades and concern over a potential Greek default saw investors avoid the single currency. It was a quiet day for data in the UK, with the main focus centring on the fall out from Friday night's rating downgrades. Out today we have inflation figures that are expected to show prices beginning to fall off. Call in now for a live exchange rate.

In the euro zone, the euro floundered near a 17 month low against the US dollar yesterday and an 11 year low against the Japanese yen as Friday's mass downgrades of ratings across 9 countries threatened the lending ability of the European bailout fund. Talks to renegotiate repayments between Greece and its creditors broke down, leaving a higher and higher risk of a 'disorderly' default by the country as opposed to the carefully managed one that had been envisaged. Call in now for a live exchange rate.

In the USA, the markets were closed yesterday for a bank holiday and sterling hovered near an 18 month low against the US currency. It will be tough for the US dollar to strengthen beyond $1.52/£1 as it is a key 'technical' level for many traders. Out later today there is manufacturing figures and a wide array of corporate earnings released on Wall St. Call in now to avoid losing out.

Elsewhere, the resignation of Swiss National Bank chair Phillipp Hildebrand in the wake of several dubious foreign exchange transactions by his wife has had little or no impact on the swiss franc. After several large transactions ahead of the SNB's announcement of a target exchange rate that saw a 10% move, the chairman had been forced to resign after accusations of insider trading.

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