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.