Sterling continues to be flavour of the month benefiting from figures that showed the UK construction industry expanded in April and from poor economic data elsewhere. The growth in the construction figures was not as great as for March but was still an important set of data as the construction sector was a key factor in the negative growth figures for the first quarter of this year. Call in now for the latest prices.

We are seeing the € at its lowest level against sterling for over two years with the euro suffering as euro zone manufacturing output contracted sharply. Manufacturing has slowed in April to its weakest level in nearly three years and German manufacturing fell for the first time since December 2011. So the lack of business confidence and the debt problems continue to adversely affect the euro. Today we have the European Central Bank meeting announcement. Given the poor state of the euro zone economy there is even talk of cutting interest rates. Please call in now for the latest update.

The US dollar gained on increased risk aversion following bad economic data at home and in the euro zone. US private employers added fewer jobs than expected in April. Tomorrow we have the hugely influential non farm payroll data so we are likely to see increased volatility while we await those figures. For the latest rates please call in now.

Elsewhere the Australian dollar continues to be under pressure following the surprise announcement of a 0.5% interest rate cut. Clearly the economy is not performing a hoped and inflation is being held within acceptable levels. However the interest rate of 3.75% is still the highest of the industrialised “G10” nations.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/