Smart Daily Currency Note | Low volumes, lots of data, plenty of opportunity for rapid changes in rates

Sterling

Sterling enjoyed a more positive day on Friday, recovering some of the losses seen earlier in the week. Despite Tuesdays bank holiday for New Year's Day, there is quite a lot of data released this week including the influential Purchasing Managers' Index (PMI) figures which come out from the manufacturing, construction and services sectors on consecutive days. We also have housing data, information on the supply of money and the net lending to individuals; furthermore, the Bank of England will release its findings from a survey regarding the current credit conditions in the UK.  Trading volumes across the global markets will remain extremely low with bank holidays from different nations spread across the first 4 days of the week; so, expect volatility to remain high and price moves to be over-exaggerated. Call in now to speak to your trader.

Euro

The euro struggled on Friday as preliminary readings suggest that the Eurozone economy contracted in the final quarter of 2012, this would be the third quarter in a row. The 10-year Italian bond auction was fairly well received, with yields only slightly higher on the benchmark note. Other data released showed that French consumer spending grew by 0.2% when a flat 0.0% reading had been anticipated; however, French third quarter GDP estimates are down to 0.1% from the 0.2% estimate in November. It should be a quiet start to the week for Europe; but, later on we have some key data released including euro area wide services and manufacturing PMI figures, unemployment data from a number of counties including Spain, inflation data and German retail sales figures will also be announced. Get in touch now to get the most up to date price.

US dollar

The US dollar faired relatively well on Friday as the markets grew nervous that no deal has been sorted to avoid the so-called fiscal cliff. The President has also now admitted that a failure to resolve the fiscal-cliff situation would hurt the financial markets. Developments over the weekend suggest that there is now a greater chance of a deal being struck that will prevent tax hikes automatically coming into effect from January 1st. Much better than expected housing data was released on Friday revealing that there are 1.7% more homes pending sale compared to last month when a 0.3% drop had been anticipated. This week we will see a lot of data released including manufacturing and non-manufacturing PMI data. We will also have the minutes from the latest monetary policy committee meeting of the Federal Open Market Committee where they announced that it will continue to keep monetary policy loose until the labour market shows significant signs of recovery. There is also a raft of employment related data released this week, culminating with the highly influential Non-farm employment data released on Friday. Get in touch now for a live price and to see if the US can avoid tumbling off the so-called fiscal cliff.

Worldwide

Elsewhere, the Japanese yen continued to come under pressure on Friday as traders speculate that the Bank of Japan will look to loosen monetary policy in the short term. Chinese manufacturing PMI data will be released today and on Tuesday; furthermore, there will be Canadian unemployment and inflation data released. It will be interesting to see how the Japanese yen fairs this week after last week's poor showing, as Japan enjoys 4 days of bank holidays on Monday through Thursday. Call in now to get a live price and a market update.

Smart Daily Currency Note | Christmas cheer fails to lift sterling

Sterling

Christmas cheer has done little to help sterling this week, enduring a torrid time against the euro dropping to a 8 month low of 1.2160. Sterling had been fairly range bound against the US dollar until yesterday, where it peaked at 1.6200 before dropping sharply to 1.6060. Data released yesterday showed that the number of new mortgages approved had risen by less than was expected; not a good sign for the UK's housing market. There is no significant data expected to be released from the UK today - that being said, the markets remain extremely volatile with trading volumes particularly low during the holiday season, so call in now to speak to your trader.

Euro

The euro has had a fairly positive week despite the European market closures and Germany enjoying three days of bank holiday, reaching a 8 month high of 1.2160 against sterling and a 1 week high of 1.3280 against the US dollar. First thing this morning we saw French consumer spending data released and we also have the benchmark 10-year Italian bond auctions today. Call in now for the latest rates and a live update.

US dollar

The US dollar has had a mixed week as traders try to second guess whether the so-called 'fiscal cliff' situation can be resolved by the January 1st deadline. The lack of resolve has damaged US consumer confidence with figures released yesterday showing a much greater drop than was expected. The President appears to be pushing for an interim deal to be struck to avoid the wave of tax reforms being implemented which many economists fear will push the US back into recession. Data released yesterday showed that the number of new people claiming unemployment related benefits rose by less than expected which is a good sign for the labour market in general. Housing data released showed that the number of new homes sold last month rose by less than was anticipated; but, prices had increased by more than expected. There is more housing data out today in the form of pending home sales and the market will hope for a more positive reading. Call in now to see how the markets will react with the impending fiscal cliff edging ever nearer.

Worldwide

Elsewhere, the Japanese yen's movements have been well documented this week, continuing to weaken against all of its major peers whilst dropping to a 2 year low against the US dollar. Inflation data showed that the price of services purchased by corporations had deflated by 0.4%, whilst minutes from the latest Bank of Japan Monetary policy meeting revealed that the central bank will look to continue to loosen monetary policy with no specific end date in mind. Commodity backed currencies have also struggled towards the back end of the week as risk aversion increased due to the fears surrounding the US fiscal cliff situation. Call in now to see if the Japanese yen will continue to depreciate.

Smart Daily Currency Note | Euro at 8 month high against sterling

Sterling

Sterling struggled on Monday and Wednesday with trading volumes particularly thin across the global markets. Sterling continued its downward trend against the euro dropping to an 8 month low of 1.2185, whilst falling to 1.6108 against the US dollar. Mortgage approvals statistics released today will be the only data of note in what is expected to be another quiet day in the UK for financial news. With trading volumes particularly thin in-between Christmas and New Years, the markets will remain extremely volatile and any movements that may occur could only be short lived; so, call in now to speak to a trader.

Euro

The euro peaked at 1.3250 against the US dollar and reached an 8 month high of 1.2185 against sterling over the last few days, with trading volumes significantly lower than normal due to European market closures and Germany enjoying three day's of bank holidays. There is very little data out of Europe today; but, the markets will focus closely on the US and its attempt to resolve the fiscal cliff situation that has the attention of the global markets. Call in now for the latest rates and a live update.

US dollar

The US dollar has had a turbulent few days as confidence and the lack there off resides around the potential resolution to the so-called fiscal cliff situation. Congress returns to Washington today and the markets hope that a deal will be struck between the Democrats and Republicans to put off the potential economy crushing tax reforms that are due to be automatically implemented in the New Year. Data released yesterday showed that US house prices had increased by more than expected indicating that the housing market is starting to recover. However, leading US retailers suggested that revenues in the holiday season have fallen short of what had been initially anticipated. It is a fairly busy day on the data front in the US today with figures released showing the number of new people claiming unemployment related benefits, the number of new homes that have been sold as well as consumer confidence data. Call your trader now to see how the US dollar will react today with a lot of data released and trading volumes remaining low.

Worldwide

Elsewhere, the Japanese yen has continued to dominate the foreign exchange headlines over the past few days, continuing to weaken against the majority of its major peers and dropping to a 2 year low against the US dollar. Inflation data released in Japan late on Monday night showed that the price of services purchased by corporations had deflated by 0.4%. Furthermore, minutes from the latest Bank of Japan Monetary policy meeting revealed that the central bank will look to continue to loosen monetary policy with no specific end date in mind. Commodity backed currencies tended to struggle yesterday with the increase in risk aversion due to the delays surrounding the US fiscal cliff situation. This evening will see more data out of Japan which includes the influential Tokyo Core CPI inflation data. Call in now to see how the Japanese yen and other currencies across the globe are fairing today.

Smart Daily Currency Note | A day of two halves for sterling at the end of last week

Sterling

It was a day of two halves for sterling on Friday, remaining fairly range bound against most of its major peers until the early afternoon when increased levels of risk-aversion saw a significant shift in favour of the traditional safe haven currencies. Increasing concern that deficit-reduction talks are not doing enough to help stave off the current 'fiscal cliff' saw sterling lose substantial ground versus both the US dollar and Japanese yen; undoing much of its previous gains. News that GDP data had been revised down from 1 per cent to 0.9 per cent also helped contribute to sterling's poor performance. Friday also saw the release of better than expected current account data, while Public Sector Net Borrowing came out worse than previously forecast. As would be expected, this week sees very little news coming out of the UK, so call in now to see if Christmas cheer can help lift sterling.

Euro

Euro stayed fairly range bound against sterling on Friday; but fell by 0.5% against the US dollar. Little data was released across Europe, although German Consumer confidence came out slightly worse than forecast. The deputy prime minister also stated that Spain will struggle to meet its 2012 deficit target with its shrinking economy limiting the impact of budget cuts causing concerns for the currency. This week is very quiet on the euro front with little data released however, we will see French consumer spending as well as an Italian 10 year bond auction at the end of the week. Call now for the latest live rates.

US dollar

The US dollar was in full rebound mode on Friday, with concern that a deal would not be reached over the fiscal cliff affair driving traders back to the safe haven currencies of the US dollar and Japanese yen, driving the price up. It is, unsurprisingly, a quiet week for data, and as long as the political brinkmanship over the fiscal cliff continues we could see the dollar continue to strengthen as thin trading volumes make other currencies look an even riskier proposition. Aside from this, some data is released on Thursday; unemployment and consumer confidence data is usually very influential, and good results have the potential to bring risk appetite back to the markets, but only if the fiscal cliff has been avoided. Get in touch now to get the most up to date price.

Worldwide

Elsewhere it seems impossible to keep the Japanese yen out of the headlines, as once again it was one of the biggest movers of the day. A significant shift from global risk appetite to aversion saw the yen strengthen dramatically versus its UK and European counterparts. It was a very different story for the Canadian dollar, falling to a two week low versus its US partner, as news that plans to allow higher taxes had been scrapped decreased demand for the currency. Friday also saw the release of slower than anticipated CPI inflation, along with GDP data remaining flat at 0.1 per cent. The majority of data out this week focuses on Japan, with Monetary Policy Committee minutes and Tokyo Core CPI inflation data being the two most prominent releases. Call in now to see if the current trends continue, and to get a live price from your trader.

Smart Daily Currency Note | Christmas spirit favours the euro, will this last?

Sterling

Overall it has been a reasonable week for sterling. Although it touched a two month low of 1.224 against the euro, it has made strong gains against other major currencies. Wednesday saw sterling buy more dollar than at any point since September, hitting 1.6307, although this can probably be put down to dollar weakness in the shadow of the fiscal cliff as opposed to any particular strength for sterling. The most important news release were the minutes from this month's monetary policy committee meeting. Although all 9 members remained unanimous in holding interest rates, they were less than positive about the economic outlook and one member voted in favour of increased quantitative easing. Today the office of national statistic publishes two important pieces of data; the current account and the public sector borrowing data. Both of which were considerably worse than anticipated last month. Current forecasts are not particularly positive, but markets will react nonetheless if the results exceed expectations and with thin trading volumes at the moment any movement could be amplified and become significant. Get in touch now for the most up to date rates.

Euro

The euro performed well all week, strengthening against its major peers and reaching eight and two month highs against the US dollar and sterling respectively. This was down to positive data coming out of Germany with improved business sentiment and the President of the European Central Bank (ECB) remaining positive about the future of the Eurozone, as well as another member of the ECB stating that he did not see the need for interest rate cuts. Greece also helped improve euro sentiment receiving its next bailout tranche, and news that Standard and Poor's had improved Greece's credit rating from selective default to B-. Today sees the release of very little news released from the Eurozone, with just German Consumer Climate data being released. Many eyes will remain fixed on the United States, with any news around the current fiscal uncertainty likely to impact the euro. Call in now to get the latest news from your trader.

US dollar

The US dollar lost ground in the first half of the week as political rhetoric was far from helpful in resolving the problem of the fiscal cliff. Come Thursday both the Republicans and the Democrats began to give ground and we saw a small rebound for the US dollar. Friday see's the release of manufacturing data from the US. The best outcome for the Dollar would be inclinations of an increase in activity signalled by rising purchasing orders. Yesterday saw the release of Home Sales and  Manufacturing data, both coming out better than previously forecast. Today's major data release focuses on core durable goods orders, forecast to see a slight decline on last month's increase. Call in now to get a live price from your trader.

Worldwide

It was once more a week dominated by the Japanese yen, as the currency continued to lose substantial ground versus its major trading peers; touching nearly a 20-month low versus the US dollar. News that new Prime Minister, Shinzo Abe and the Bank of Japan had indeed increased quantitative easing as expected led to a significant sell off of the yen in favour of alternative currencies. It has been somewhat of a mixed week for the higher-yielding currencies, as a play-off between risk appetite and aversion has seen the likes of the Australian and New Zealand dollars fall throughout the week; with much cause being accrued to an apparent deadlock in negotiations between US politicians. Today, the major data releases focuses on Canada, with both core CPI inflation data and GDP expected to give an insight into the current economic climate. Call in now for the latest news and to get a live rate from your trader.

Smart Daily Currency Note | Euros strengthens, US dollar weakens

Sterling

During the course of yesterday sterling reached a three month high against the US dollar peaking at 1.6307; but, dropped to a two month low of 1.2240 against the euro. The Monetary Policy Committee meeting minutes revealed the members voted 8-1 against an increase in quantitative easing with one member voting for a £25 billion increase as risks from the Eurozone crisis is easing and inflation danger is persisting. The Bank of England did say however that the strength of the pound had been damaging the UK economy, which led some to believe the central bank is eyeing up another round of quantitate easing in an attempt to weaken sterling and boost exports. As expected, all members of the MPC voted to keep interest rates on hold at 0.5 per cent. Key data released today will be the monthly report on UK retail sales. As always, this will provide us with an early look at consumer spending levels in the run up to Christmas, and in turn a good idea of the overall economic activity in the UK, so call in and find out which way will this has influenced sterling today.

Euro

The euro strengthened yesterday and reached an eight month high against the US dollar of 1.3307 based on positive data from Germany. Europe's largest economy looks set to overcome recent troubles as German business sentiment again beat expectations. This was accompanied by positive thoughts regarding Greek debts across the Eurozone resulting. There is not much data out of Europe today and although we have seen some weakness for the euro overnight against both the US dollar and sterling, the euro's recent strength has seen it pushing key resistance levels against major currency partners. We will have to see if it can break through and if so, how far it can go. Call in now for the latest update and a live rate.

US dollar

After the US dollar was sold off through much of the day, dropping to multi month lows against both sterling and the euro, some strength returned in the afternoon as key resistance levels were not broken. The Fiscal Cliff continues to dominate both the political and economic landscape, but President Obama said in the late afternoon that he was optimistic about reaching a deal, despite threatening to veto the speaker's proposition. As noted yesterday we wait to see if the dollar follows recent trends when on hitting a low it quickly reverses the trend, gaining on occasion up to ten cents. This suggestion could be supported if today's unemployment data continues the positive trend of the last few months. Get in touch now to book in the high rates while they last.

Worldwide

Elsewhere, the Japanese yen continued to weaken yesterday, dropping to a one and a half year low against sterling ahead of the Bank of Japan's (BoJ) last interest rate decision for 2012. The New Zealand Dollar weakened after whole-milk (a major export of NZ) prices fell for a fourth-straight auction showing a moderation in the nation's growth. The Australian dollar also declined for a third day against the USD, following worries that the nation's economy is slowing with further interest rate cuts anticipated by the central bank. In addition to the Bank of Japan's (BoJ) last interest rate decision, overnight we will also see the release of New Zealand GDP and today we have Business Confidence data released. Later on today, the main release will be the Canadian Core Retail Sales figures. Call in now for the latest news and updates.

Smart Daily Currency Note | The US dollar continues to weaken

Sterling

It was a somewhat mixed day for sterling yesterday as risk appetite was the main driver in the market. Sterling was slightly down against the euro and Swiss franc, but renewed confidence that a deal would be struck regarding the so-called fiscal cliff in the US drove sterling towards a high point close to 1.627, its highest level since September against the dollar. A broad swathe of inflation data was released, most of which slipped below projections, however, the crucial consumer price index data came in at 2.7%, nearly half a present over the forecast figure, which gave some support to sterling as it decreased the likelihood of more monetary easing in the short term. Today's financial news in the UK will be dominated by the release of the minutes from this month's monetary policy committee meeting which some expect to deviate from the recent unanimous decisions on interest rates. If the market reaction to last week's speech by the ECB president on changing interest rates is anything to go by, any change could see dramatic consequence. Get in touch now to find out which way sterling has moved.

Euro

The euro continued its gains yesterday as the euro looked a less risky proposition given recent reports on the European Central Bank's (ECB) new role as single banking supervisor and global risk appetite increased. The euro pushed through the 1.32 mark against the dollar reaching a 7 month high, which was matched by gains against the yen and the Australian dollar. Successful Greece and Spanish bond auctions also helped the single currency yesterday. The key data out today is a German survey on business conditions. Last month saw the first positive outlook in six months so a good set of data could support the euro further. However, some analysts suspect that there is very little to justify the euros period of strength and that we are due for a dramatic correction. Certainly poor results would cast doubts over the justification for current euro rate, so get in touch now to take the rates while it lasts. 
 
US dollar

The fiscal cliff continued to dominate the economic landscape yesterday, as it seems it will do until a concrete resolution has been agreed upon. Negotiations between the President and the Speaker of the House continue with the Speaker suggesting that he will go to Plan "B" if need be. The last time the US dollar was this weak  we saw a rapid reversal in its fortunes, including a 10 cent reversal for sterling back in April/May this year as traders viewed sterling to be "overbought". Important construction data is released today could look to start such a reversal, but reaction will most likely be muted in the current uncertain landscape. Get in touch now to take advantage of the US dollar rate while it lasts.

Worldwide

Elsewhere, the Swedish krona performed well yesterday following the central bank's decision to cut interest rate by 0.25% which was widely anticipated; but, implicated it would not be looking to cut interest rates in 2013. The Japanese yen suffered yesterday as investors sold off positions in traditional safe haven currencies and sought riskier assets. The Reserve Bank of Australia's monetary policy minutes revealed that it was not a clear cut decision to cut interest rates indicating that there should not be another rate cut in the short term.  Current account figures were announced from New Zealand overnight, as was Trade balance data from Japan. Today we will see whole sales data released from Canada whilst in the evening we will have GDP data from New Zealand. 

Smart Daily Currency Note | Inflation data released today, how will it affect sterling?

Sterling

In a day that was quiet on data from the UK, sterling climbed gently against most of its major pairs reaching a two month high of 1.62 against the US dollar. Against the euro it stayed very close to 1.23 for most of the day. Today, however, is likely to see a great deal more volatility. Significant inflation data is released this morning; last month saw targets overshot by almost half a percent, and sterling reacted favourably, bucking an otherwise downward trend. With instability reigning elsewhere, positive sentiment may paint sterling as a safe haven. Traders will also be looking forward with anticipation to tomorrow's release of the minutes from this month's monetary policy meeting as some expect that the panel may, for the first time in well over a year, have been split on the best monetary policy. Get in touch now for the most up to date pricing.

Euro

The euro had a mixed day yesterday reaching a seven month high of 1.3185 against the US dollar as the President of the European Central Bank remained positive about the future of the Eurozone and a member of the ECB said he does not see the need to cut interest rates. Rumours also circulated that Greece had received the €4.3 billion tranche of its bailout fund booting confidence for the region.  With very little data out of Europe today the markets will look elsewhere for influence. Call in now for the latest news and rates.

US dollar

The US dollar struggled yesterday as traders remain cautious about the looming fiscal-cliff situation. Rumours started to circulate that the Republicans and Democrats were approaching some form of an agreement; but, alas no deal has been made to-date. Manufacturing data from New York came in much worse than expected showing a sharp drop in activity in December. Today we will see the release of Current Account data which is directly linked to currency demand and the forecasted conditions on future Housing Market Index that is currently expected to bring a negative outlook. Call in to see how this will affect the dollar and get a live price from our traders.

Worldwide

Elsewhere, the biggest mover yesterday was once more the Japanese yen, losing significant ground against all major peers on the news that new Prime Minister Shinzo Abe is likely to dramatically expand the country's monetary stimulus. Speculation that Abe will undertake unlimited easing to revive economic growth saw the currency fall to the lowest level since April 2011 versus the US dollar, and at one point dropping below 136 versus sterling. The Hungarian forint also struggled, losing ground across the board on speculation that the central bank may change its policy on holding two-week deposits. Overnight saw the release of New Zealand business confidence, along with Australian monetary policy meeting minutes. Call in now to see how this has affected the currencies and to get a live rate. 

Smart Daily Currency Note | No change, euro still on top

Sterling

Sterling continued to have a split personality on Friday, managing to advance against several of its major trading peers, while losing ground against others. The release of strong German Services PMI data helped contribute to sterling losing further ground against its European partner, falling below 1.23 again. It was better news versus the US dollar, with sterling managing to continue its weekly gain against its American counterpart. There was very little data out of the UK at the end of the week to influence the currency. Expect more influence on the markets this week as Consumer Price Index (CPI) inflation data is released; expected to remain slightly above the Bank of England's 2% target. Thursday will also see the release of Core Retail Sales data which will give a good indication into the current level of consumer activity and economic health in the economy in this very important time before Christmas. Call in now to see how this will affect sterling and to get a live price.

Euro

The euro performed well on Friday reaching a three month high of 1.3170 against the US dollar and pushing below the 1.23 mark against sterling due to the central bank intervention in the US and the European politicians agreeing on a framework for a single supervisory bank for the 27 member community. With thin trading volumes this week we can anticipate volatile pricing as market reaction is exaggerated to any bit of news. The key data release comes on Wednesday as an influential German survey on business climate is released, a strong indicator of economic health that was positive for the first month in six in November - more good news could see the euro continue to strengthen. Traders will have a keen eye on affairs on the other side of the water as the Americans look to avoid the fiscal cliff — good news will be positive news for the euro as risk appetite returns. The euro certainly seems to have a following wind supporting it at the moment. Check in now for the latest news and pricing.

US dollar

The US dollar continued to weaken across the board on Friday following last week's announcement from the Federal Bank to inject more money into the economy and alongside the on-going Fiscal Cliff situation that is without resolution. Poor inflation data released on Friday showed that the Core (CPI) data had declined by more than forecast. This was after a US inflation report showed prices fell in November for the first time in six months, boosting expectations the Federal Reserve will stay on its "operation twist" monetary policy path. Today we have a quiet day on data coming out in the US; but, this week all eyes will be on Obama's plan to tackle the Fiscal Cliff, especially following frustration and concerns from little progress being made last week. Building permits and existing home sales figures will also be released as well as the Philly Fed Manufacturing Index and Core Durable Goods Orders. Call in now for the latest news and live rates.

Worldwide

Elsewhere, on Friday the yen strengthened from an almost nine-month low against the dollar ahead of the elections on Sunday in anticipation of a change of power. The Swedish krona weakened against most of its major counterparts after its Finance Minister said unemployment was likely to keep increasing. Strong Chinese manufacturing data lead to gains for the commodity backed currencies. In South Africa markets will be nervous and volatile ahead of the 5 yearly national congress for it's ruling party – which some see as losing its grip. We are likely to see further volatility for the Australian and New Zealand dollar with quarterly Current Account and GDP data released early in the week. Call in today to speak to your trader.

Smart Daily Currency Note | The euro finishes the week on a high

Sterling

A difficult week for sterling as it weakened off against the euro and the higher yielding currencies. It did strengthen against the US dollar and Japanese yen as risk appetite was a key driver in the market. A raft of better than expected employment data did help support sterling. Data released showed that full-time hiring had reached a one and a half year high, unemployment benefit claimants actually fell by 3,000 in the last 3 months when a 5,900 increase had been anticipated and the overall unemployment rate stayed at 7.8% when a marginal increase had been expected. Sterling struggled yesterday however, as a report showed the majority of U.K. manufacturers are seeing a decline in orders. This in conjunction with the fear that the Bank of England will resume quantitative easing and the news that Standard and Poor's (one of the big three credit rating agencies) had put a negative outlook on the UK's AAA credit rating pushed sterling weaker against the majority of its major peers. With very little data out today, we don't anticipate much volatility, but we are in the run up to Christmas where trading volumes are low and rates can change quickly so get in touch for up to the second pricing.

Euro

The euro performed well this week reaching  1.31 against the US dollar following German economic sentiment data coming out better than expected and news of monetary easing in the US. Positive results from a Spanish and Italian bond auction also helped support the euro as did news that Greece has finally had the next tranche of its bailout fund approved. At the Economic Union where ministers sought for deeper economic and monetary integration, yesterday a decision was made to appoint a common banking supervisor. The most influential data released today will be the Manufacturing and Services Purchase Manager Index (PMI) figures across Europe. Should these come in lower than forecast, expect the euro to lose some of its gains this week and slide against its major trading partners. Call in now to see how this has affected the market, and to get a live price.

US dollar

It has been a broadly poor week for the dollar as the fast approaching Fiscal Cliff has weighed heavily in the minds of traders. A resolution must be reached by the end of next week as the Christmas period interrupts proceedings after that. The Federal Reserve (the American equivalent of the Bank of England) announcement of an increase in asset purchasing by $45 billion a month, a third round of quantitative easing, also hit prices in the middle of the week. Today the most influential data release is on inflation, and as trading volumes decrease in the run up to the break, expect increased volatility in pricing. Get in touch now for the most up to date rates. 

Worldwide

Elsewhere it was a difficult week for the Japanese yen, consistently losing ground versus its major trading peers as expectations of a loosening of monetary policy dampened demand for the currency; seeing it fall to 19 and 9-month lows versus sterling and the US dollar respectively. One of the surprise movers early in the week was the Swiss franc, losing ground versus the euro as UBS followed Credit Suisse in announcing that they will start charging clients on accounts which hold francs. It was also a difficult week for the South African rand, failing to capitalise on last week's advances, as news that gold and mining production had fallen significantly across the nation. Other key data out this week saw the Canadian trade balance come out better than expected, helping the currency rise to an eight-week high versus its US partner. Today sees very little data released so call in now to get a live price.

Smart Daily Currency Note | The Euro in the ascendancy again

Sterling

Markets seem to have forgotten about the threat of interest rate cuts in the euro zone as the euro had a good day. Sterling on the other hand had a mixed day yesterday, losing half a cent against the euro whilst reaching a 6 week high of 1.6170 against the US dollar on the back of the news that the US central bank had increased monetary easing. Sterling started the day in the ascendancy following much better than expected employment data. Figures released showed that the number of people claiming unemployment benefits actually fell by 3,000 in the last 3 months when a 5,900 increase had been anticipated. Furthermore, the overall unemployment rate stayed at 7.8% when a marginal increase had been expected. There is very little data out of the UK today bar data showing the expected order volumes from manufacturers over the next 3 months. Get in touch now for the most up to date news and rate.

Euro

The euro performed well yesterday, strengthening against the vast majority of currencies and reaching  1.31 against the US dollar in the evening after the Federal Reserve ramped up stimulus as expected. The euro was also buoyed by a relatively successful Italian bond auction, with yield on 1 year bills reaching their lowest level for 9 months. Today investors focus will be turned to EU Economic Summit as they will discuss plans for deeper economic and monetary integration. Call in now to see how this might affect the market, and to get a live price.

US dollar

The US dollar fell against all its major counterparts bar the Japanese yen yesterday ahead of the Federal Reserve announcement that it had extended its monetary stimulus measures, and fell even more quickly  following the announcement.  The announcement also included the news that interest rates will be held at these low levels until the unemployment rate falls to 6.5% which is likely to continue to weaken the dollar. This is the third major round of quantitative easing in the US, so the markets are hardly shocked by the move - some analysts predict that the shift will be short lived, but the fiscal cliff still looms over affairs. Today a swathe of data is released around lunch time which could turn the tide. After poor results last month, a swing to the positive for Retail sales and inflation data could be especially influential. Get in touch now for the most up to date pricing.

Worldwide

Elsewhere, one of the biggest mover of the day was Japanese yen, continuing to lose ground against its major trading peers. Ever increasing speculation that any shift in the country's political make-up will lead to increased levels of quantitative easing saw the yen fall to a 19-month low of 134 versus sterling. It was a different story for the Australian dollar, as news that the US central bank will embark on a further round of monetary easing helped increase demand for the higher-yielding currencies. This news also buoyed the Canadian dollar, helping it rise to an eight-week high versus its US counterpart. Today's major data focuses on the Swiss franc, with the release of the latest Libor rate, followed by a monetary policy assessment and press conference from the Swiss National Bank. Call in now to see how this has influenced the markets and to get a live rate.

Smart Daily Currency Note | Risk appetite increases which supports the euro

Sterling

Sterling had a mixed day yesterday, weakening off against the euro and the higher yielding currencies and strengthening against the US dollar and Japanese yen as risk appetite drove the market. Unemployment data  will be the main news on the agenda in the UK today, with both the rate of unemployment and figures showing the change in the number of people claiming unemployment benefits being released. Get in touch now for the most up to date news and rate.

Euro

The euro continued to rally yesterday as German economic sentiment data was markedly better than expected pushing to 1.30 against the US dollar. Strong results from a Spanish bond auction also helped support the euro despite hints that the Spanish were not far away from requesting a bailout. Analysts are citing continued monetary easing in the USA as limiting the fallout to recent Spanish and Italian news. With little data out today, the focus will be on a meeting between finance ministers in Brussels, looking ahead to Thursday's economic summit. Get in touch now for the latest news and rates.

US dollar

The US dollar struggled across the board yesterday with markets nervous ahead of today's Federal Open Market Committee (FOMC) decision on interest rates and quantitative easing and with increased optimism surrounding a potential resolution to  the so-called fiscal cliff situation. The trade balance figures came out close to what was expected and therefore didn't have much impact on the markets, although the data revealed that October's exports to China had plunged by the most since January 2009. Today we have the second day of the FOMC meeting, economic projections and press conference which follows. This may give some indication of progress on US fiscal talks along with anticipation that the Federal reserve may extend its level of quantitative easing, especially as the so-called "operation twist" policy completes to the end of the year. 

Worldwide

Elsewhere, the Swiss franc dropped against the euro yesterday hitting three month lows after UBS said it will follow Credit Suisse's lead and will start charging clients on accounts which hold Swiss francs. The New Zealand dollar performed relatively well as the Reserve Bank of New Zealand announced it was not looking to cut interest rates. The South African rand weakened for a second day in a row as the nation’s gold and mining production fell versus a year ago. The Polish zloty and Hungarian forint both performed well yesterday due to the general increase in global risk appetite. Overnight, the Governor of the Reserve Bank of Australia was talking; but, very little data is due to be released today. Call in now to get a live quote from your trader.

Smart Daily Currency Note | A steady day for sterling

Sterling

After the excitement of late last week, sterling traded in a fairly narrow range yesterday. Against the euro it peaked at  1.244 and against the US dollar at 1.609 before giving back some of these gains in the latter part of the day. Data released showed that full-time hiring had reached a one and a half year high in the UK, alleviating concerns that the recent rise in employment was purely down to the temporary work created by the Olympics.  There is very little data out of the UK today bar the benchmark 10-year bond auction which is always a useful guide to gauge how investors currently view the need for safe haven assets. Get in touch now for the most up to date price.

Euro

It was a mixed day for the euro yesterday, declining through the morning following the announcement by Mario Monti, the Italian Prime Minister, that he was to resign after the upcoming 2013 budget vote.  Poor French and Italian Industrial data helped to drag prices down with traders looking to the pound as a safe haven. The tide turned somewhat in the afternoon as the euro strengthened. Today sees German Economic Sentiment data and with Germany as the core of Europe, good results could bring some confidence back to the markets, and continue to strengthen the euro. Get in touch now for a more up to date report and a quote.

US dollar

The US dollar weakened broadly yesterday despite it being a flat day on data released. This was mainly due to "Fiscal Cliff" fears returning with all eyes are on President Obama's speech in Detroit who will be promoting his plan to avoid this. His plan features a $1.6 trillion in tax increases and also $600 billion in spending cuts. Furthermore, with the Federal Bank meeting on Thursday for the final time this year, much of the focus will be on whether or not the central bank will start another round of monetary easing.  Today we have the US trade balance figures with unexpected data being sure to cause volatility, so call in now.

Worldwide

Elsewhere, the best performing currency yesterday was the Polish zloty after two central bankers suggested that the Polish central bank would look to cut interest rates next month. The South African rand and Swedish krona both struggled yesterday, with the South African rand particular weak in anticipation of inflation data released later on this week. Chinese trade balance data released yesterday was much worse than expected. The main released today will be trade balance data from Canada; but, not much else is expected to be released. Call in now to get a live price from your trader.

Smart Daily Currency Note | The euro losses its glow

Sterling

Sterling continued to lose ground against the US dollar on Friday dropping to 1.60; but, traded in a relatively narrow range against the majority of currencies. Rumours continue to build that the UK will soon lose its gold plated AAA rating; however, a lot of economists are suggesting this is already priced into the market and won't really affect the UK's economy due to only 7 countries currently having a “stable outlook”. On the data front, the change in manufacturing production fell sharply by 1.3% when only a 0.2% drop had been anticipated. The Governor of the Bank of England is speaking this week and we will also have the benchmark 10-year bond auction. Unemployment data will be one of the key releases this week and will include figures showing the change in the number of people claiming unemployment benefits. Get in touch now for the most up to date news and rate.

Euro

It was once again a tough day for the euro on Friday, continuing to lose ground against all major peers. Increasing speculation that the European Central Bank may be in support of an interest rate cut if the Eurozone's economic performance doesn’t show signs of improving decreased demand for the 17-nation currency. News that German industrial production contracted more than expected - total output shrunk by 2.6% - did little to restore confidence, and saw the currency fall to a 2-week low versus the US dollar. This week sees the release of German economic sentiment and Manufacturing Purchase Manager Index (PMI); should these come in lower than forecast, expect the euro to continue its slide against its major trading partners. Eyes will also be on the EU economic summit where heads of state are set to continue discussions over a proposed banking union. Call in now to see how this has affected the market, and to get a live price.

US dollar

The US dollar strengthened on Friday due to an increase in risk aversion in the global markets following news being released that more members of the ECB are in favour of rate cut in 2013. Furthermore, data released on Friday showed that both the non-farm employment change and unemployment rate in the US came out better than forecast, with employers adding more jobs than forecast last month and the unemployment rate dropping to almost a four year low. We have a quiet day today in terms of data released in the US, but this week we will see the US trade balance as well as the Federal Open Market Committee statement and economic projections. Towards the back end of this week we will also see Core Retail Sales and also Core Consumer Price Index data out. Call in now for the latest news and updates.

Worldwide

Elsewhere, the South African rand registered is highest weekly gain since September on Friday. A gain of 2.3% for the week could have been higher if not for a depreciation against the USD on Friday. The Canadian dollar dropped on Friday following employment data coming out of both the US and Canada. A 7.2% unemployment rate was received positively on the back of an expected 7.4% reading. Overnight we had the release of trade balance data rom China and we have more data out from China later on in the week in the form of Manufacturing PMI. The Governor of the Reserve Bank of Australia will be speaking this week and we will also see the Swiss National Bank (SNB) decision on interest rate. Call in now to get a live quote from your trader.

Smart Currency Rates and Comments 7th December 2012 | Surprise talk of interest rate cuts for the euro

Sterling

Having struggled last week, sterling remained fairly steady throughout this week and enjoyed a rally against the euro as the European Central Bank (ECB) raised the possibility of interest rate cuts in the Eurozone . A series of UK Purchase Manager Index (PMI) data released earlier in the week drove prices with better than expected manufacturing data being counteracted somewhat by poor construction results. Nervousness ahead of the Office for Budget Responsibility forecasts and the Autumn mini budget weighed on sterling's relative strength, seeing a drop against the euro to 1.2270 at one stage. However, sterling actually strengthened after the release, despite concerns being raised over the future of the UK's AAA credit rating. It seems as though most of the downside was already been priced into sterling's exchange rate. Manufacturing production data showing the change in the total inflation is due to be released later today, with a -0.2% prediction. Call in to find out the latest rates with your trader now.

Euro

Recent optimism over the future of the Eurozone due to the apparent resolution to the Greek debt crisis drove prices to a seven week high early in the week; but this optimism fell away yesterday bringing the euro down with it. At yesterday's ECB press conference the President was unprecedented in his negativity, not only saying that economic weakness was likely to continue, but also that the central bank had discussed lowering interest rates. This surprise news caused the 17-nation currency to drop half a cent in a few hours. The ECB president is due to speak again today at a conference, in light of yesterday's surprise news, traders will be listening nervously and it will take a huge amount of positivity to turn yesterday's move around. Get in touch now for the most up to date price.

US dollar

Over the week the US dollar had been losing ground against the euro and sterling due to concerning news regarding the “fiscal cliff” in the US, though losses against its key trading partners were pared off as both the euro and the pound lost value yesterday. The main focus in the US continues to be the looming so-called fiscal-cliff. If the disagreement between the Democrats and Republicans continues the markets will start to get very nervous. The US dollar rally yesterday was emphasized by better than expected unemployment data – though many analysts are putting this down to the post Hurricane Sandy effect. More labour data will be released today in the form of the highly influential non-farm pay rolls data. With a mix of positive and negative labour data released over the past couple of days, the markets will look closely at this release for influence. Call in now to discuss what might happen with your trader. 

Worldwide

Elsewhere, it was a mixed week for the higher yielding currencies as a play-off between risk aversion and appetite continued to influence demand for typically riskier assets. The Swiss franc was a surprise mover, reaching 1.2140 versus the euro on the news that Credit Suisse will start charging negative interest rates on accounts which hold Swiss francs. The Japanese yen continues to remain volatile versus most major trading peers as speculation that any parliamentary change will lead to an increase in quantitative easing remains rife. The Australian dollar was one of the biggest movers early in the week as a gloomier global economic outlook increased risk aversion. The decision to cut the country's interest rate to 3% had a fairly muted effect as comments from the bank suggested a further rate cut is highly unlikely. Overnight we also saw the release of Australian trade balance data. Further data this morning includes Swiss foreign currency reserves, and later we will see the latest employment data coming out of Canada. Call in now to see how this has impacted the market and to get a live price.

Smart Currency Rates and Comments 6th December 2012 | Chancellor speaks, sterling steady

Sterling

Sterling's relatively steady performance yesterday may have come as a surprise to many, as the much anticipated Autumn statement highlighted just how fragile the UK economy still is. With the statement preceded by much weaker than expected Services Purchase Manager Index (PMI ) data - a figure of 50.2 suggests the sector is only just continuing to grow - one would have been forgiven for expecting sterling to fall versus its major trading peers. In fact sterling managed to break a consistent decline versus the euro, and continued to gain ground versus the US dollar and the Japanese yen. This comes in spite of the Office for Budget Responsibility prediction that the economy will contract by -0.1% this year and the Chancellor confirming the UK would miss its debt-to-GDP target. It appears that much of this bad news was “priced in”, hence the muted response from the market. Today sees the release of further influential data, with decisions by the Bank of England on asset purchases and the central interest rate. Forecast to remain constant, any change is likely to significantly affect sterling, so call in now for the latest news.

Euro

The euro had a mixed day yesterday, losing ground on the back of a number of poor sets of data in the morning including a less than impressive benchmark 10-year Spanish bond auction. European retail sales data was also particularly poor as was the Euro-area wide services PMI data that was released. Prices staged a small rally later in the day as Eurozone finance ministers expressed their optimism over the 10 billion euro Greek bond buyback program, a crucial element of the recovery plans. Today the European Central Bank announces interest rates, paramount for currency valuation. No change is expected, but expect markets to react to the press conference held afterwards as the ECB indicates the path going forward. Get in touch now for the most up to date news and rate.

US dollar

The US dollar stayed fairly range bound yesterday against sterling whilst strengthening slightly against the euro, mainly attributed to markets in Europe rather than any positivity from the US. Unemployment data released yesterday was marginally worse than expected and lends its hand to Friday's highly influential non-farm pay rolls release. More unemployment data is being released later today and the number of new people claiming unemployment benefits is predicted to have fallen slightly from last week's reading. Non-manufacturing PMI data announced yesterday was slightly better than expected; but, the focus in the US remains on the looming fiscal-cliff. Obama's first time interview since his re-election, discussed in depth the fast approaching   influential fiscal cliff. Obama declared that he will make no deal on the country's fiscal future unless congressional leaders first accept an increase in tax rate for the country's top earners. This continuing disagreement between the Democrats and Republicans may cause the US dollar to strengthen as investors seek safer havens for their money until there is some sort of resolution. Call in now to discuss what might happen with your trader. 

Worldwide

Elsewhere, the Australian dollar performed badly yesterday with the GDP data coming out worse than expected, showing a slowed economy in the last quarter, partially due to tighter government spending and also the lowest consumer demand in 2 and half years essentially validating the interest rate cut decisions made by the central bank. The Japanese yen remained weak especially compared to the US dollar due to the on-going political worries ahead of December 16 elections. Overnight we saw the release of the Reserve Bank of New Zealand's decision on interest rates with the market forecasts suggesting a hold at 2.50%. Building permits and PMI data will be released from Canada today on what is otherwise a fairly quiet day. Any unexpected data will cause volatility so call in now for the live rate and news.

Smart Currency Rates and Comments 5th December 2012 | Sterling below 1.23 interbank against the euro

Sterling

A very busy week of data releases and public announcements for the UK and the rest of the world continues today with the Chancellors Autumn Statement. Sterling struggled yesterday as the Construction Purchase Manager Index (PMI) data was surprisingly low showing the industry had contracted when a mild expansion had been predicted. Today, we have the Services PMI data released, but, the main focus will be on George Osborne’s Autumn statement and the forecasts from the Office of Budgetary Responsibility (OBR)  for the next two years. Yesterday the British Chambers of Commerce downgraded their forecasts for the next two years and it is expected that the OBR statement is unlikely to drive any positivity into the markets. Furthermore, nervousness ahead of the budget will likely weigh on sterling as few analysts expect good news from the treasury, especially as concerns increase over the future of the UK's AAA credit rating. Get in touch now for the most up to date price.

Euro

The euro continues to strengthen, reaching a 6-week high against the US dollar following the Greek announcement claiming that they would invest around 10 billion euros into national bonds at a much more favourable market price. This was supported by the French Finance Minister. Data showing Spanish unemployment was much better than expected also boosted confidence in the Eurozone in general. On a more negative note, finance ministers from the 27 member states discussed banking supervision and regulation at length yesterday; but, the meeting was adjourned with no agreement being reached. Europe area wide Services PMI data, retail sales data and a benchmark 10-year Spanish bond auction is all on the cards tomorrow; so , there is a lot of room for volatility. Please call in to get a detailed update from your trader.
 
US dollar

The US dollar struggled yesterday and hit a six week low against the euro and a four week low against sterling, but rallied towards the end of the day settling in around the 1.61 level. Employment data released today will be used by traders to try and second guess the highly influential non-farm pay rolls release on Friday. As a result, we often see a knee-jerk reaction if the actual releases differs significantly from the forecast figures. Non-manufacturing PMI data is also being released later today and the markets will hope for a much better reading than the dreadful manufacturing PMI figures released on Monday. The biggest news story that continues to move for the US dollar is the impending fiscal cliff; with President Obama stating yesterday the Republican proposal won't do enough. We will have to wait and see if the two parties can come to some form of agreement before the January deadline. Call in now for a live quote.

Worldwide

Elsewhere, the Swiss franc was one of the worst performers yesterday after Credit Suisse confirmed it would start charging negative interest rates on accounts which hold Swiss francs; as a result, the EUR/CHF rate moved away from its peg at 1.20 reaching 1.2140. The Reserve Bank of Australia cut its interest rates to 3% , down from the previous of 3.25% as was widely anticipated; but, the Australian dollar performed relatively well as the comments from the central bank indicated that another interest rate cut is not likely in the near term. The Bank of Canada kept interest rate on hold at 1% as was widely expected. GDP data was released from Australia late last night and this evening we will see the Reserve Bank of New Zealand's interest rate decisions and rate statement.

Smart Currency Rates and Comments 4th December 2012 | Positive news supports the euro

Sterling

Yesterday was a strong day in general for sterling apart from holding steady against the euro, gaining ground against the majority of its major trading peers and reaching a one month high of 1.61 against the US dollar. Manufacturing Purchase Manager Index (PMI) data came out better than forecast - although it still showed that British industry wasn't expanding - at 49.1, the highest since September, increasing demand for sterling. Today we will see the release of construction PMI data, forecast to see a slight decline below last month's figure of 50.9. The main focus though will be on the budget announcement on Wednesday where details of government growth expectations will be put forward which will be closely scrutinized by investors. It is key that the UK maintains its AAA credit rating as this allows it to fund its debt at much lower interest rates than say Spain and Italy. Call in now to see if sterling continues to improve and to get a live rate.

Euro

The euro performed well yesterday as the 17-nation currency continues to strengthen as news spread through the markets that Greece is preparing to buy back up to €10 billion worth of government securities which helped alleviate concerns that the debt crisis is worsening. The Europe wide Manufacturing PMI data which was released confirmed that the sector continues to contract with the figures coming out at 46.2 for November. The most significant data released from Europe today will show the change in Spanish unemployment and traders are sure to play close attention to this release with Spanish unemployment now at 25%. Please call in to get a detailed update from your trader.

US dollar

The US dollar struggled yesterday as Manufacturing PMI results were lower than expected, showing a contraction on last month's figures and posting the worst figures since 2009. Nervousness over the impending fiscal cliff also weighed on prices as the dollar touched a 6 week low against the euro. With little data expected today, expect the lower value to consolidate as lawmakers continue to debate the way forward and help a lower risk sentiment for the euro. As sterling buys more dollar than any time in over a month, get in touch to lock in a rate..

Worldwide

Elsewhere, the biggest mover of the day was the Indian rupee, losing significant ground against most major currencies, and falling as much a 1.4% versus sterling. It was a tough day for higher yielding currencies in general, with the Australian and New Zealand dollars both struggling; as an underlying sense of risk-aversion in the global economy decreased demand for riskier assets. Overnight saw Australia cut its interest rate  to 3% , down from the previous of 3.25% which amplified the Australian dollar sell off yesterday. Late on today we will have the interest rate decision from the Bank of Canada which is widely expected to be kept on hold at 1%. Call in now to see how these central bank decisions impact their respective currencies and to get a live price from your trader.

Smart Currency Rates and Comments 3rd December 2012 - The euro continues to strengthen

Sterling

The euro is in the ascendancy having gained five cents against sterling and seven cents against the US dollar since July. On Friday, sterling struggled across the board, hitting a 5 week low against the euro as optimism over the debt crisis in Greece drove the euro upwards. Furthermore, renewed confidence over a resolution surrounding the so-called fiscal cliff in the US caused global confidence to increase. This week is likely to see greater volatility in pricing, as influential Purchasing Managers' Index (PMI) data comes out from the Manufacturing, Construction and Services sectors on consecutive days. Furthermore, Thursday's interest rate announcement and decision on quantitative easing by the Bank of England could cause greater price action; however, both are widely expected to be kept on hold with most economists predicting another round of monetary easing in the New Year. Please call in to get a detailed update from your trader.

Euro

The euro had a strong day on Friday, gaining ground against all its major trading peers as optimism surrounding the latest tranche of the Greek bailout increased. The 17-nation currency touched a 1-month high versus the US dollar, as news that German ministers had approved the latest agreement in Greece's ongoing rescue package. Friday did see the release of slower than expected inflation data, however speculation that US politicians are hopeful of avoiding the so-called fiscal cliff led to a surge in risk appetite. This week sees a host of data released from Europe with the majority of focus on Spain. Unemployment figures and a Spanish 10-year bond auction on Tuesday will provide an insight into investor’s outlook on the Spanish economy and confidence surrounding its future growth. The European Central Bank (ECB) interest rate decision will also be released however, the President of ECB's comments on Friday may prove more influential on the euro following the deal on Greek-aid last week. Call in now to see if it has continued to improve, and to get a live rate.

US dollar

The US dollar had a mixed day on Friday as renewed confidence that the so-called fiscal-cliff situation could be sorted by its January deadline was marred by a raft of weak data being released. Inflation data, personal spending and personal income figures all came out below market expectations. This week we will see a lot of data released including manufacturing and non- manufacturing PMI data alongside US consumer sentiment figures which will identify the level of financial confidence amongst consumers. There is also a raft of employment related data released this week, culminating with the highly influential Non-farm employment data released on Friday. Get in touch now to take advantage of the most up to date price.

Worldwide

Elsewhere, the South African rand was the worst performer on Friday, dropping against all of its trading partners following the release of data showing that its trade gap was 10 times bigger than this time last year. The Japanese yen was also extremely weak on Friday following the news that the Japanese cabinet had approved an additional JPY 132 billion worth of quantitative easing, dropping to a 7 month low against the euro. GDP data out of Canada showed that the economy had stagnated when slight growth of 0.1% had been anticipated. There is a lot of data out of Australia this week including the Reserve Bank of Australia’s interest rate decision, retail sales figures, GDP data, unemployment data and trade balance figures. It is also a busy week for Canada with the Bank of Canada's interest rate decision, building permits figures and unemployment data. Call in now to speak to a trader.