Sterling hit a 3 month low against the US dollar following the euro downwards as concerns grew over the euro zone crisis. Sterling dropped by 1% to a low of $1.5308/£1 – the lowest since early October – after risk appetite suffered off the back of comments by credit rating agency Fitch. The agency spooked markets with comments suggesting that the European Central Bank should do more to tackle the euro zone debt crisis. Despite falls against the US dollar, sterling held on to a 16 month high against the euro. Out later today we have the Bank of England's monthly meeting which could cause some volatility. Call in now for a live exchange rate.

In the euro zone, the euro dropped to a 16 month low against the US dollar on the comments by an official from rating agency Fitch. Investors are feeling very wary ahead of today's ECB meeting and Spanish and Italian bond auctions later in the week. Comments from Fitch made clear that the ECB should be buying Italian bonds to avoid a “cataclysmic” collapse of the euro. Call in now to ensure you don't lose out to market volatility.

In the USA, the US currency strengthened against most of its counterparts as investors looked to the safety of US government bonds in the face of a worsening situation in the euro zone. The US dollar is set for further strength so call in now for a live rate.

Elsewhere, the Canadian dollar fell for the first time in 3 days as safe haven demand for the US currency drove demand for the US dollar and pushed riskier investments lower. Speculation over the euro zone crisis and a potential French rating cut saw demand for riskier investments. Get in touch for a live exchange rate.

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