US growth stumbles, will this help sterling? | Smart Daily Currency Note

Sterling

Sterling had a mixed day yesterday amid a number of positive developments released from the UK; but, still fell to 1.1630 against the euro at one stage. Mortgage approvals increased by more than forecast to the highest level since January 2012 showing that Bank of England scheme may have started to boost the "flow of credit" and support to the economy. Net Consumer Credit also expanded over the December period which was the largest advance in two years. The recent statements from the incoming Bank of England Governor implies there is scope to do more to support the economy with different types of stimulus and this is keeping sterling pressured, in addition to the uncertainty of Britain staying in the European Union. Today is a quiet one for data out of the UK, all eyes are will be on Fridays release of Manufacturing data. Markets will look elsewhere for influence today however, so call in now for the latest news and updates.

Euro

The euro continued to strengthen yesterday, reaching 1.1630 against sterling and 1.3570 against the US dollar at one stage. With the ECB being less inclined to ease monetary policy when compared to other central banks such as the Bank of Japan and the Bank of England, it is looking that the euro is set to continue on this rally. However, with the large selection of data set to be released within the Euro zone today, the euro's course may possible change. The most influential data coming out today is the Italian 10 year bond auction and the Spanish GDP data. Furthermore, Germany's president is also set to talk upon the  automotive industry early this afternoon. Call in now to discuss the state of the euro and for a live market quote from your trader. 

US dollar

Yesterday was a difficult day for the US dollar, as a combination of increasing global economic confidence and considerably worse than expected US GDP data dampened demand for the traditionally safe-haven asset. News that fourth quarter GDP had shown a contraction of 0.1% - dramatically below last quarter's 3.1% growth and predictions of 1.1% growth - saw the dollar lose significant ground versus its major peers. Continued risk appetite from the Eurozone saw the US currency fall to its lowest level since November 2011 versus the euro, whilst also paring its recent gains versus the Japanese yen. Yesterday also saw the release of key employment data which came out better than forecast and indicates that Fridays more influential reading will also be positive, however it was not enough to restore full confidence in the US economy as expectations remain rife that the Federal reserve is likely to commit to further monetary easing. Today sees the release of the weekly unemployment claims, so call in now for the latest news and to get a live price from your trader.

Worldwide

Elsewhere, the New Zealand dollar experienced a torrid time on the market today sliding against all of its major counterparts. This day to forget was set in motion following speculation that the reserve bank will attempt to weaken the NZD.  The Canadian dollar fell against most of its trading counterparts following the release of the worse than expected GDP data out of the US. Today see's the release of GDP data from Canada which is expected to show a monthly increase of 0.2%. The Japanese Yen also continued its trend of falling against all major counterparts. Call in now for the latest news and to speak to your trader.

Respite for sterling, will it be all too brief? | Smart Daily Currency Note

Sterling

Yesterday proved to be a stronger day for sterling than we have seen recently, managing to halt its continued declines versus many of its major trading peers. News that one of the Bank of England's policy makers suggested that the UK's economic growth is likely to grow between 2 to 2.5 per cent over the next 18 months - considerably higher than previous estimates - helped support sterling and see it increase from a five month low versus the US dollar. It was also a better day versus the euro, with sterling rising for the first time in four days, returning above the key 1.1700 level at one stage. Today we see the release of data showing the net lending to individuals and statistics demonstrating the number of new mortgage approvals which will provide an insight into the current levels of consumer spending and their confidence in the UK's economy. Early suggestions are for a slight improvement, so call in now for the latest news and to get a live price.

Euro

It was a mixed day for the euro yesterday as the continued play-off between risk appetite and risk aversion continued to influence demand for the single currency. Increasing consumer confidence across the currency bloc, coupled with news that the European stock markets appreciated to a near two-year high saw the 17-nation currency rise to the highest level since December 2011 versus the US dollar. It was a different story versus higher yielding currencies - most notably the Swedish krona and Norwegian Krone - as improving global economic sentiment and risk appetite led to an increase in demand for  riskier assets. German Consumer Climate data released yesterday came out as forecast, reinforcing the belief that economic sentiment is improving in the Eurozone's powerhouse economy. Today sees the release of Spanish GDP data, alongside  German 30-year and Italian benchmark 10-year bond auctions. Call in now for the latest news from the Eurozone and live prices on the euro.

US dollar

It was a difficult day for the US dollar yesterday as a combination of considerably worse than forecast US Consumer Confidence and increasing global risk appetite decreased demand for the traditionally safe-haven currency. Continued improvements in global economic sentiment - most notably across the Eurozone - saw the US dollar fall to a 13-month low versus the euro, whilst also failing to continue its recent rise versus sterling. Today sees the release of key employment data, this is likely to give a clear insight into the current levels of economic health in advance of the official Non-Farm Employment data being released on Friday. The FOMC will be making a statement today following its latest decision on Monetary Policy. Furthermore, we also have the advanced GDP figures for the fourth quarter of 2012 released. Expectations are for a significant decline from the last release; but, are expected to show growth of over 1%, so call in now for the latest news and the see how this will impact the US dollar.

Worldwide

Elsewhere, it was a good day for the Australian and New Zealand dollar, performing well against the majority of their major trading peers. News that Australian Business Confidence had improved considerably - it was in fact the largest rebound in over a decade - from last month's level saw the Australian dollar increase versus 14 of its 16 major partners. Similarly, an unexpected reduction in New Zealand's trade deficit saw the currency snap a three-day decline versus the US dollar. It was also a better day for the Canadian dollar, managing to rise for the first time in four days versus the US dollar after it failed to break through the key level of CAD/USD 1.01, this is spite of the pessimistic outlook for economic growth in Canada. Today sees the release of Swiss economic barometer information in the morning, before the latest key Interest rate decision from the Reserve Bank of New Zealand late this evening. Call in now for the latest news and to speak to your trader.

No respite for sterling as it continues to weaken | Smart Daily Currency Note

Sterling

It was once more a disappointing day for sterling yesterday, continuing its dramatic decline of last week versus its major trading partners.  Over the weekend, the incoming Bank of England Governor stated that he felt that there was room to look at further monetary easing if the UK’s economy continues to struggle which weighed heavily on sterling. With an increasingly pessimistic outlook hanging over the UK economy and demand for the British currency remaining muted, sterling was unable reverse any of its previous losses and even fell below 1.165 against the euro, its lowest level for over a year, before regaining a little bit of ground. It was a similar story versus the US dollar, weakening to the lowest level since August 2012 at 1.5678 by mid-afternoon before regaining a little bit of ground. Today sees no significant data scheduled to be released from the UK, so call in now for the latest news and to get a live price off your trader. 

Euro

The euro enjoyed a strong start to the week yesterday, advancing against most of its major peers as improving economic confidence continued to filter through to the seventeen nation currency. News that Money Supply across the Eurozone had increased at a slower rate this month failed to dampen demand for the currency as the positive outlook for European Central Bank loan repayments issued last week, continued to help risk appetite return to the markets. The major gains for the euro came versus its UK counterpart, continuing to approach 1.16 level. Today's major data release focuses on the Eurozone's 'economic powerhouse', with German Consumer Climate likely to give a clear insight into the current level of consumer confidence within the country. Call in now to see how this will impact the euro and to get a live price.

US dollar

Yesterday proved to be a strong day for the US dollar, as it advanced versus all but one of its most traded peers. The news that Core Durable Goods Orders came out better than forecast at 1.3% gave a good indication that production across the country is gradually starting to recover, helping to increase demand for the dollar. The US currency also enjoyed a fourth day of gains versus its Canadian counterpart - the longest streak since October - as continued signs of slower than expected economic growth weighed on the Canadian currency. The other major data release yesterday saw Pending Home Sales come out considerably worse than forecast, suggesting the US economy still remains fragile. Today's major release is focused on Consumer Confidence - expected to show a slight decline from last month's figure. Should this be the case, increased volatility for the US dollar is likely, so call in now for the latest news. 

Worldwide

Elsewhere, one of the biggest movers of the day was the Japanese yen, strengthening versus the majority of its 16 major peers on the increasing speculation that the currency has been allowed to decline too far. Expectations amongst investors that the yen would be unlikely to continue its recent slide saw a renewed influx of demand for the Asian currency. It was a mixed day for the Swiss franc yesterday with the news that key finance ministers still feel the currency is overvalued, despite the recent slides seen versus the euro - which can be accrued to a return of risk appetite across the region as improved economic sentiment returns to the Eurozone. Today see key Business Confidence information released from Australia in the early hours, likely to give a clear insight into the current level of economic health in the country. Call in now to see how this may affect you and to get a live price.

Sterling still friendless, still losing ground | Smart Daily Currency Note

Sterling

January, so far, has been a terrible month for sterling and with limited data out this week to reverse this trend it looks set to continue. It was, as many had anticipated, a difficult morning for sterling on Friday as worse than forecast GDP data saw the currency loose further ground against its major trading peers. News that the British Economy had contracted 0.3% in the fourth quarter of 2012 saw sterling fall to a thirteen month and a five month low versus the euro and US dollar respectively. By early afternoon sterling had reversed most of its losses - recovering to 1.5827 against versus the dollar - although it remained at the lowest level since December 2011 versus its European counterpart. This morning we have opened down and close to 1.17 against the euro and below 1.575 against the US dollar. This week is relatively muted in terms of UK economic data, with the only major release on Friday being that of Manufacturing Purchasing Managers' Index (PMI). Having seen Manufacturing Production data come out considerably below forecast earlier this month, any contraction is PMI is likely to have a detrimental impact on the already fragile sterling. Call in now for the latest news and to get a live price from your trader.

Euro

The euro enjoyed a strong end to the week on Friday, strengthening against all but one of its major trading partners as improved economic sentiment began to creep back into the 17 nation currency bloc. News that the European Central Bank is expecting repayment of a larger amount of three-year loans than previously estimated increased demand for the currency. Coupled with better than forecast German Business Climate data, the euro rose to the a near eleven-month high versus the US dollar, hitting 1.3479 in the afternoon, whilst also reaching 0.8537 versus sterling by mid-morning. This week sees a host of market data released from the Eurozone, with German Consumer Climate information likely to give a further indication of economic health in the Eurozone's 'powerhouse'. The end of the week sees Spanish and Italian manufacturing PMI data, along with the latest unemployment rate for the bloc as a whole. Call in now to see how this information may impact currency, and for a live rate.

US dollar

The US dollar had a fairly muted day on Friday, with little data out, reacting mainly to news from its trading partners - most notably the disappointing British GDP data - rather than anything else. This week looks unlikely to be so calm however with influential data releases every day. Today, of particular note, is Durable Goods data, a key indicator of production followed by home sales data and we also have figures showing the number of homes pending sale. Later in the week, we have consumer confidence data on Tuesday and there is also a raft of employment related data released at the back end of the week, culminating with the highly influential non-farm employment data released on Friday. This is now particularly important given the link that the Federal Open Market Committee (FOMC) have expressly linked labour markets with monetary policy. The FOMC will also be making a statement on Wednesday following its latest decision on Monetary Policy. Furthermore we have preliminary GDP data released which is expected to show the economy grew by 1.3%. Get in touch now for the latest news and live rates. 

Worldwide

Elsewhere the biggest mover of the day was the Canadian dollar, falling to a near six-month low versus its US counterpart on the news that key Consumer Price Index inflation data had come out much lower than forecast at -0.6%. Coupled with news that economic growth in the country is likely to be slower than thought saw the currency also lose considerable ground versus the euro and sterling. There were also significant losses for the Japanese yen, paring many of the gains seen earlier in the week, as speculation began to increase that the Bank of Japan is under pressure to further expand economic stimulus in the economy. This week's major data releases sees the latest Reserve Bank of New Zealand's interest rate decision on Wednesday, followed by key Canadian GDP data on Thursday and Australian Producer Price Index information in the early hours of Friday morning. Call in now to get the latest update from your trader.

No respite and no support for sterling as it continues to weaken | Smart Daily Currency Note

Sterling

A terrible start to 2013 for sterling losing five cents against both the euro and the US dollar. And this week saw this continue with sterling dropping below the 1.18 mark against the euro  for the first time in 11 months, and  falling to a five month low of 1.5750 against the US dollar.  It has been a busy week in the UK, David Cameron's much anticipated speech revealed plans for a referendum in 2017 on the UKs continued EU membership. Monetary Policy Committee meeting minutes revealed that whilst there were no votes in favour of a change to interest rates, one member voted in favour of increasing the current the level of quantitative easing. We had poor manufacturing data earlier in the week and yesterday's figures showed that the relative level of current sales in January had fallen; but, by less than originally anticipated. Today's main announcement sees the preliminary fourth quarter GDP figures released which will give a clear insight into the current level of economic health in the UK and is currently forecast to show that the economy contracted by 0.1%. If this figure is confirmed, it will put increased pressure on credit rating agencies to cut the UK's gold plated AAA credit rating whilst putting added pressure on sterling. Call in now for a live rate and to see how this release could affect you.

Euro

The euro faired relatively well this week reaching 11 month highs against sterling and remaining range bound against the US dollar despite Spanish unemployment reaching record highs - overall jobless rate is at 26% and youth employment is at 55%. Euro-area wide services and manufacturing Purchasing Managers' Index (PMI) also disappointed the markets; but, traders seemed to have taken the lead from the better than expected German figures supporting the euro. Earlier in the week German Economic Sentiment came out considerably better than forecast and moreover, the European Central Bank President suggested late on Tuesday night that the worse of the region's debt crisis may be over. Europe takes its lead from Germany once more today with the highly influential German Business Climate data released. Although the there is little other data coming out, the euro could have another positive day due to the effects of economic climates around the world. Call in now for a live market quote and an update on the Eurozone in general.

US dollar

The US dollar had a slow start to the week with US markets closed on Monday in observance of Martin Luther King day as well as President Obama’s inauguration ceremony. During the week the US House of Representatives voted in favour of suspending the Debt ceiling limit until May 19 to avoid a default in the short term. Sales of existing homes in the US came out worse than expected; but, the reading still left total sales in 2012 at the highest level in the last five years. The weekly unemployment claims report was much better than expected, reinforcing the sentiment that the labour market in the US is recovering.  Today see's the release of important residential data which will show the number of new homes sold in the last month.  The US dollars seems to be performing well as Obama begins another four years in the Oval office, call in now to see how the US dollar is expected to fair over the coming months. 

Worldwide

The Japanese yen has continued to hog the spotlight this week, after a highly anticipated Bank of Japan meeting caused less waves than most had expected. The Japanese yen actually saw some strength return following the news that the Bank of Japan had set a new inflation target at 2.0% but made clear that it would delay introducing the unlimited monetary easing through additional asset purchases until 2014. Perhaps in reaction, yesterday, the Japanese economy minister said that he considers further weakening to be beneficial and that USD/JPY hitting 1/100 would not be a problem. Worse than forecast export results supported his suggestion, and the yen fell around half a percent against the US dollar. The Canadian dollar dropped to a near 10 week low against the dollar as the central bank help interests rates this week and looks less likely to implement an interest rate hike in the near future. The South African rand continued to fall this week, hitting a four year low as the central bank left interest rates unchanged and appeared to indicate that a weak rand wasn't necessarily a bad thing. The Danish krone had a strong end to the week following the news that the Danish Central Bank had raised interest rates by 0.1%. Call in now to see how the market is trending.

A steady for sterling yesterday | Smart Daily Currency Note

Sterling

Surprisingly yesterday turned out to be somewhat of a muted day for sterling, despite the release of key unemployment data and David Cameron's much anticipated press speech regarding the UK's current stance on EU membership. As had been widely expected, Cameron outlined his stance on a potential referendum in 2017, however support for continued membership remains strong across the continent, helping to minimise any detrimental effect UK-EU severance could have upon sterling. With the Monetary Policy Committee Meeting Minutes coming out as expected yesterday - no votes in favour of a change to interest rates and one member voting in favour of increasing the current the level of quantitative easing.  Out today we have the number of new mortgages approved and figures showing the relative level of current sales from a survey of retail and wholesale companies. Traders will now turn their focus to Friday's fourth quarter GDP release which will give a clear insight into the current level of economic health in the UK. Call in now for the latest news and to get a live price from your trader.

Euro

The euro struggled yesterday, falling against the US dollar - reaching a week low of 1.3302 - whilst also weakening off slightly against sterling. The European Central Bank President suggested late on Tuesday night that the worse of the region's debt crisis may be over. Euro-are wide services and manufacturing Purchasing Managers' Index (PMI) data released today will be the main news on the agenda with the main focus on the  German Manufacturing announcement. Call in now to find out the impact of this data and for a live market quote.

US dollar

It was another mixed day for the US dollar yesterday as price action took its lead from data released across Europe. Yesterday evening the House of Representative voted in favour of suspending the Debt ceiling limit until May 19 to avoid  a default in the short term. This bill now needs to get passed to the Senate for approval. Today sees the release of the weekly unemployment claims report which traders will pay close attention to as it shows the current labour-market conditions that are highly correlated with consumer spending and furthermore, significant due to the Federal Banks recent stance that monetary policy will remain ultra-loose until the labour sector recovers. Call in today for a live rate from your trader.

Worldwide

Elsewhere, the biggest mover of the day was Canadian dollar, losing ground versus its major trading peers on news from the Bank of Canada that a planned increase in interest rates would have to be delayed as economic growth proves slower than previously anticipated. A 0.3% cut to the central bank's growth forecast saw the Canadian dollar fall to a two month low versus its US counterpart and saw sterling rise to a week-high at 1.5862. It was also a tough day for the Australian dollar falling against all but one of its major partners, after key Consumer Price Index data came out slower than forecast at 0.2%, suggesting the Reserve Bank of Australia may be inclined to further cut interest rates. The main data release tomorrow focuses on China, with the latest flash Manufacturing data released in the early hours of this morning. Call in now for an update and to get a live price.

At best a steady day for sterling | Smart Daily Currency Note

Sterling

Sterling had a mixed day yesterday. It dropped below 1.1850 against the euro for the first time since February 2012 in the early morning but rallied throughout the day regaining most of the losses. It was the same story as the last few days as very poor manufacturing data continued to weigh on prices; but, picked up in anticipation of the Governor of the Bank of England speech last night. The UK remains nervous at the prospect of a triple dip recession and investors will look towards Fridays preliminary GDP data release for a clearer indication of the state of the UK's economy. Today, the key data comes out this morning, with both the minutes of last month's Monetary Policy meeting and unemployment data being released. Furthermore, David Cameron is speaking this morning and his speech is expected to make clear his feelings about Britain's continued involvement in the 27-nation European Union, with a referendum increasingly likely. Get in touch now for the latest news and trends. 

Euro

The euro lost significant ground early in the morning versus its major trading partners on the rumours, (which were hastily dispelled hours later) that Jens Weidmann a representative to the ECB had resigned, which also sparked sudden losses in the German stock market. These losses - which saw the euro fall to its lowest level in 5 days versus the dollar; hitting a key support level at 1.3280 - were quickly erased as German Economic Sentiment came out considerably better than forecast, suggesting that economic health in the Eurozone's powerhouse is better than anticipated; thus increasing demand for the 17-nation currency. Today we see very little data released from the Eurozone bar consumer confidence figures, however, traders will look to digest the finer details from the ECB President's speech last night as well as looking elsewhere for influence. Call in now to see what impact this may have and to get a live price from your trader.

US dollar

The US dollar had a mixed day against the euro yesterday with swings in both directions as data was released across Europe. Sales of existing homes in the US came out worse than expected; but, the reading still left total sales in 2012 at the highest level in the last five years. There is little information out of the US today; but, the first day of the 5 day World Economic Forum (WEF) annual meeting held in Davos takes place. This meeting is attended by a raft of influential figures including central bankers, prime ministers and finance ministers; and whilst some say you cannot expect any actual decisions to be made from these meetings, any comments from major players can cause volatility in the market. Rates can change quickly so get in touch for up to the second pricing and a live market update.

Worldwide

Elsewhere, the Japanese yen was the best performer yesterday as the first Bank of Japan meeting of the new Prime Minister Abe's term announced that it would be setting a new 2.0% inflation target; but, critically that it would delay introducing the unlimited monetary easing through additional asset purchases until 2014. The Hungarian forint struggled yesterday following a report from Goldman Sachs suggesting the currency would struggle as they predict its central bank will look to loosen monetary policy. Core retail data from Canada disappointed showing a 0.3% drop when slight growth had been anticipated. Australian inflation data was released over night and we also have the interest rate decision from the Bank of Canada later on today. Call in now to see how the market is trending.

Sterling still has no friends and continues to weaken | Smart Daily Currency Note

Sterling

It was very much a mixed day for sterling yesterday, remaining distinctly range bound versus its major peers in the morning, before continuing last week's trend and losing further ground later on in the day. Ever increasing speculation that the impending Monetary Policy Committee meeting minutes will reveal increased expectation of fourth-quarter contraction in GDP, coupled with an expectation for a future inflation rise continued to dampen demand for the British currency. Having gradually approached 1.59 versus the US dollar by mid-morning, sterling lost ground falling to just above 1.58 by early evening. There has been a slight rebound this morning pushing up towards 1.585. It was a similar story versus the euro, touching a 10-month low at 1.1870 yesterday and falling even lower overnight. Despite this negativity for sterling, UK stock markets have rallied with the FTSE 100 reaching a 5 new year high. The main data released today sees the latest figures for Public Sector Net Borrowing, along with Industrial Order Expectations - likely to give a clear indication into the strength or lack of it of UK economic health. Should these come out worse than forecast, it is likely that sterling will continue to decline, so call in now for the latest news and a live price from your trader.

Euro

The euro continued on its relentless run against sterling yesterday, breaking through the 1.19 support level and reaching 1.1870, whilst having a relatively steady day against the US dollar. The Eurozone Finance ministers met yesterday and will meet once more today, but in contrast to the meetings towards the end of the 2012 there is much less of a sense of panic about these early 2013 gatherings. The Finance misters met to discuss the state of Europe and the Eurozone in general with focus on the continued discussions over a Cyprus bailout, although this may take some time to complete, while the aid programmes to Portugal, Ireland, and Spain’s banks will all be reviewed. Any comments from ministers about the strength of the euro will of course be closely watched given the Head of the Eurogroups view that its current levels were ‘dangerously high’, furthermore, the President of the ECB president is also due to speak early this afternoon. Call in now for a live market vote and to hear the outcome of these highly influential meetings.

US dollar

The US dollar traded in fairly narrow ranges yesterday with US markets closed in observance of Martin Luther King day as well as President Obama’s inauguration ceremony - trading volumes were noticeably reduced as a result. That being said, the US dollar did manage to strengthen to a near five-month high versus sterling whilst also weakening against the Japanese yen from its strongest level since June 2010 as the Bank of Japan started its two-day policy meeting in Tokyo. With businesses returning to work today, many eyes will be on the release of Existing Home Sales data - forecast to improve slightly - which will give a clear indication into the current level of economic health in the country. Call in now to see how this will affect the dollar and to get a live price from your trader.

Worldwide

Elsewhere, the Japanese yen took a turn for the better recovering from a two and a half year low against the US dollar and strengthening across all major currencies in anticipation of last night's first Bank of Japan meeting of the new Prime Minister Abe's term. Early this morning the Bank of Japan announced that it would be setting a new 2.0% inflation target but that it would delay introducing the unlimited monetary easing through additional asset purchases until 2014. The Japanese yen has strengthened since the announcement. The Swiss franc also had a good day yesterday, strengthening against most of its major counterparts as traders closed off positions to take profit following the marked sell off in the Swiss franc over the past week or so. The Swiss franc  recovered some of last week's heavy drop against the euro - where it weakened to 1.2569 - the lowest since a cap had been imposed on the franc against the euro. Today will also see core retail data from Canada which will be good insight into the state of the Canadian economy. A main factor in this data are sales figures from the automotive industry and therefore a key insight into current spending trends.  Call in now to see how the market is trending.

No mates sterling continues to fall | Smart Daily Currency Note

Sterling

It was once more a disappointing day for sterling on Friday, losing further ground against most major currencies as weaker than forecast key retail sales data heaped further pressure on the already fragile UK economy. One of the biggest moves of the day came against the US dollar, where sterling fell to its weakest level since mid-November, before gaining support just above 1.5850 in the late afternoon whist challenging the 1.1900 mark against the euro. The British currency also saw a steep decline versus the Indian rupee, falling almost 2 per cent to the lowest level since early December. Speculation surrounding Britain's continued involvement in the 27-nation European Union was also rife, as excerpts released from David Cameron's delayed speech suggest a referendum is increasingly likely. With no date yet confirmed for the speech, investors will be keeping a close eye on sterling, with any loosening of the UK-EU relationship likely to further dampen confidence in the currency. This week sees a host of data released from the UK, with key focus on the Monetary Policy Committee meeting minutes on Wednesday, before Friday sees the release of preliminary GDP data; forecast to show the economy is likely to have contracted in the 4th quarter of 2012. Call in now to see how this affects sterling and to get a live price from your trader.

Euro

On Friday, the euro finished the week with a fall versus the US dollar, whilst pushing to fresh highs against sterling. The euro stabilised against the US dollar to a level from the previous day after a member of the European Central Bank Executive Board commented about how he expects that the banks repayments of funds would result in a rise of short-term interest rates. This week the markets will focus on the Eurogroup and the Economic and Financial Affairs Council (ECOFIN) meeting taking place on Monday And Tuesday where finance ministers all meet to discuss the state of Europe and the Eurozone in general. Any leaked information can cause a great deal of volatility. We also have a raft of data out of Europe with Euro-are wide services and manufacturing Purchasing Managers' Index (PMI) data released. We also have an indicator of economic health in Germany being leased on Friday as the Institute for Economic Research will give out its monthly report on current business conditions and expectations for the next 6 months. Call in now to for an up to data market information.

US dollar

The US dollar strengthened against sterling and the euro on Friday, finishing on 1.586 and 1.331 respectfully, this was in spite there being poor consumer sentiment data being released. Due to the national bank holiday the US dollar is set to have a slow start to the week; however, with a variety of data set to be released later in the week, we could see a lot of movement for the US dollar. Therefore, data to look out for is Tuesday's Homes Sales data, Thursday's weekly unemployment claims and data upon New Homes Sales coming out Friday. To find out the state of the US dollar and for a live market quote, call your trader now.

Worldwide

Elsewhere, the focus this week remains on Japan. The long anticipated first Bank of Japan meeting of the new Prime Minister Abe's term finally begins today, with dramatic monetary easing expected to be implemented shortly, the Japanese yen was trading at around 90 at the end of last week so we could see a considerable shift if achieved. The Russian dubbed "currency war" will begin to come to the fore this week, as the Thai baht hit a 17 month high last week, and central bankers have raised the idea of acting to remedy the situation. The Swiss national bank may look to influence the value of the Swiss franc against the euro after it dropped through the 1.25 mark, saying that this should be set as the new low cap, and defended at all costs. It is also a busy week for Canada with retail sales and the interest rate decision from the Bank of Canada. For more news, and up to the second pricing, call in to your trader.

Smart Daily Currency Note | Sterling below 1.20 against the euro

Sterling

It was once more a disappointing day for sterling on Friday, losing further ground against most major currencies as weaker than forecast key retail sales data heaped further pressure on the already fragile UK economy. One of the biggest moves of the day came against the US dollar, where sterling fell to its weakest level since mid-November, before gaining support just above 1.5850 in the late afternoon whist challenging the 1.1900 mark against the euro. The British currency also saw a steep decline versus the Indian rupee, falling almost 2 per cent to the lowest level since early December. Speculation surrounding Britain's continued involvement in the 27-nation European Union was also rife, as excerpts released from David Cameron's delayed speech suggest a referendum is increasingly likely. With no date yet confirmed for the speech, investors will be keeping a close eye on sterling, with any loosening of the UK-EU relationship likely to further dampen confidence in the currency. This week sees a host of data released from the UK, with key focus on the Monetary Policy Committee meeting minutes on Wednesday, before Friday sees the release of preliminary GDP data; forecast to show the economy is likely to have contracted in the 4th quarter of 2012. Call in now to see how this affects sterling and to get a live price from your trader.

Euro

On Friday, the euro finished the week with a fall versus the US dollar, whilst pushing to fresh highs against sterling. The euro stabilised against the US dollar to a level from the previous day after a member of the European Central Bank Executive Board commented about how he expects that the banks repayments of funds would result in a rise of short-term interest rates. This week the markets will focus on the Eurogroup and the Economic and Financial Affairs Council (ECOFIN) meeting taking place on Monday And Tuesday where finance ministers all meet to discuss the state of Europe and the Eurozone in general. Any leaked information can cause a great deal of volatility. We also have a raft of data out of Europe with Euro-are wide services and manufacturing Purchasing Managers' Index (PMI) data released. We also have an indicator of economic health in Germany being leased on Friday as the Institute for Economic Research will give out its monthly report on current business conditions and expectations for the next 6 months. Call in now to for an up to data market information.

US dollar



The US dollar strengthened against sterling and the euro on Friday, finishing on 1.586 and 1.331 respectfully, this was in spite there being poor consumer sentiment data being released. Due to the national bank holiday the US dollar is set to have a slow start to the week; however, with a variety of data set to be released later in the week, we could see a lot of movement for the US dollar. Therefore, data to look out for is Tuesday's Homes Sales data, Thursday's weekly unemployment claims and data upon New Homes Sales coming out Friday. To find out the state of the US dollar and for a live market quote, call your trader now.

Worldwide

Elsewhere, the focus this week remains on Japan. The long anticipated first Bank of Japan meeting of the new Prime Minister Abe's term finally begins today, with dramatic monetary easing expected to be implemented shortly, the Japanese yen was trading at around 90 at the end of last week so we could see a considerable shift if achieved. The Russian dubbed "currency war" will begin to come to the fore this week, as the Thai baht hit a 17 month high last week, and central bankers have raised the idea of acting to remedy the situation. The Swiss national bank may look to influence the value of the Swiss franc against the euro after it dropped through the 1.25 mark, saying that this should be set as the new low cap, and defended at all costs. It is also a busy week for Canada with retail sales and the interest rate decision from the Bank of Canada. For more news, and up to the second pricing, call in to your trader.

Smart Daily Currency Note | Will euro/sterling breach 1.20?

Sterling

Sterling weakened across the board yesterday following a negative World Bank Report, which cut its global growth forecasts from 3% to 2.4% for 2013 year boosting demand for safe haven currencies. This negativity was mainly due to the high levels of unemployment and low business confidence in developed nations. Sterling's depreciation against the US dollar continued, with rates dropping below the 1.60 mark for the first time since November, whilst remaining close to the nine month low against the euro. All eyes are on David Cameron for the time being as he prepares to reveal his plans on repatriating powers from the European Union - this uncertainty about the UK's future within the European Union is hurting sterling. There is very little in terms of significant data released for the UK today; but, call in now to see if sterling will continue to fall.

Euro

The euro strength continued yesterday as it proceeded to gain ground versus sterling challenging a ten month high and the psychological resistance level of 1.20. The Euro zone currency did see a slight decline earlier in the day, as news that Luxembourg's Prime Minister (who leads the euro-area finance ministers) suggested a dramatically strengthening euro may in fact be detrimental to the economic situation; although this blip was fairly short lived, as overall positive economic sentiment proved to be the main driver of the currency. It was a relatively quiet day in terms of data being released from the Eurozone, although we did see key Consumer Price Index (CPI) Inflation data remain constant at 2.2%. Today sees very little data released from the Eurozone. Please call in now for the latest information and to get a live rate.

US dollar

In spite of the great range of data released yesterday in the US, the US dollar traded fairly steadily. It strengthened around lunchtime, falling below 1.60 against sterling as data showed that far more foreigners than Americans bought US debt last month than had been expected - indicating a demand for the currency, but settled back down in the afternoon. Key inflation data from the US showed that the Consumer Price Index dropped to 1.7% whilst the Core reading remained unchanged at 1.9%. The key data releases today include construction permits - an indicator of future construction activity, and unemployment data. Analysts are forecasting a small drop in unemployment claims. With the increased importance put on unemployment after policy makers linked it to monetary policy, if the drop exceeds economic forecasts expect markets to react strongly. Get in touch for the latest news and up to the second prices.

Worldwide

Elsewhere, the Japanese yen strengthened for a second day running as Russian politicians bemoaned the widespread intention to deliberately weaken exchange rates saying that the world is on the brink of a "currency war". A key Japanese trading partner, Australia, saw its dollar weaken as Japanese consumer confidence fell, the New Zealand dollar suffered a similar drop. Today sees two releases on unemployment data in Australia, forecasts expect a small increase, any decline will be positive for the currency. Call in now for a live price and a market update.

Smart Daily Currency Note | A brief respite for sterling?

Sterling

It was a mixed day yesterday for sterling; whilst certainly not seeing a revival versus its major trading peers, it was able to stem the significant declines it has been experiencing over the past few days. The British currency increased slightly versus the euro, although it continues to hover close to the key support level of 1.20; should it fall below here we could see sterling decline dramatically versus its European partner. News that key Consumer Price Index (CPI) inflation data had remained constant at 2.7% helped steady expectations that the economy was sliding further towards a contraction - albeit not alleviating fears altogether. The biggest shift of the day was focussed around the Japanese yen, where speculation that the currency has been excessively devalued saw it strengthen to a near two week high versus sterling. Today sees no major data released from the UK, so call in now to get a live price from your trader.

Euro

The euro's recent positive trend stalled yesterday as it approached the key psychological resistance level of 1.20 against sterling, whilst struggling to break through the 1.34 mark against the US dollar. Negativty in the eurozone spread as Germany's Federal Statistics Office showed that GDP in 2012 came out below expectations at 0.7%, much lower than the 3% seen in 2011, whilst also slashing its growth forecast to 1% for 2013. Highlights how business confidence slipped away last year as the Euro zone politicians prevaricated on how to sort out their debt crisis. Furthermore, records show that the economy shrunk by 0.5% in the 4th quarter of 2012; however, surprisingly this bad news didn't lead to any significant market impact. Today will see the release of inflation data from the Eurozone in the morning, with the CPI reading expected to remain stable at 2.2%. In a day with little data out, the benchmark 10-year German bond auction report could get a bit more attention, given it indicates the price of borrowing and following yesterdays news. Call in today to check with our traders to see how the euro if fairing and for a live price.

US dollar

The US dollar had a relatively stable day yesterday, recovering somewhat against the euro - peaking at 1.3310 - whilst remaining fairly range bound against sterling. Positive retail sales figures which came out yesterday morning helped support the US dollar which had been on a negative run against the euro. Other data released included the Producer Price Index (PPI) which showed a 0.2% deflation in prices. Late on Monday night, the chairman of the Federal Bank suggested that the economy remained fragile and that vigilance was paramount until the debt ceiling issue has been sorted. The key release today will be the Core CPI inflation data coming out this morning - this states the change in the price of goods and services purchased by consumers; of which is predicted to have a slight increase. To find out what impact this data may have upon the US dollar rate, call in now to speak to your trader.

Worldwide

Elsewhere, the big story came from Japan as the Economy Minister said that while a weak yen would boost exports, it could be harmful to people's livelihoods, reducing speculation that the government would look to weaken the currency even further. The Yen gained for the first day in nearly week on the news. As the outlook for the Eurozone looks up, the need for the Swiss franc as a safe haven currency has dropped, causing the currency to weaken. The South African rand continued to drop, hitting a 6 week low, as the largest platinum producer, a key export for the country, announced a halt to production at four of its mines. The  Norwegian krone also struggled yesterday as the central bank's Deputy Governor hinted that it may look to cut interest rates in the next central bank meeting due to the negative impact the strong krone is having on the economy. Get in touch now for the latest news and prices.

Smart Daily Currency Note | Euro continues to gain ground

Sterling

The turn of a new week failed to bring any cheer for sterling, as it continued its slide versus major trading peers. With little data released from the UK yesterday, the impact of considerably worse than expected manufacturing data released at the end of last week coupled with an increasing pessimistic economic outlook continued to have an impact, with the British currency falling closer to the key support level of 1.20 versus the euro; reaching a low of 1.2010 in the early afternoon. If we break through this level against the euro we could see a rapid weakening in sterling. Increasing speculation that the current account deficit has expanded to 3.5% of GDP has also sparked fears among traders, perhaps helping to explain sterling's sudden fall versus its partners. Today sees the release of key Consumer Price Index (CPI) inflation data, with any increase above the current level likely to increase doubt about an economic recovery in the UK. Continued talk about a possible referendum of EU membership by David Cameron is likely to continue to influence the markets, so call in now for the latest news and for a live price.

Euro

The euro built on last week's gains yesterday, finishing on 1.336  against the US dollar and threatened to break the psychological resistance level of 1.20 against sterling. There was little significant data released to drive this market movement. In fact  we actually saw  euro-area wide and Italian Industrial Production data being released which came out much weaker than expected. It is another quiet day on the data front in the eurozone with  little to no influential data being released. Call in now to find out whether the euro is still making positive gains and for a live market quote.

US dollar

The US dollar had a mixed day yesterday, touching a near two-year high against the Japanese yen and strengthening against sterling, but slipped elsewhere as traders bet on continued stimulus measures ahead of a speech by the Chairman of the Federal Reserve Bank. It is a busy day on the data front for the US today with key inflation figures released including the Producer Price Index (PPI) statistics which have disappointed for the last two months and the CPI data. We also have two sets of highly influential retail sales data released today as well as an address from one of the members of the Federal Open Market Committee. With a lot of data being released which will all be closely analysed by traders, we will have to see how the US dollar copes as it looks to regain on the Euro.

Worldwide

Elsewhere, the Japanese yen continued to struggle yesterday despite Japanese financial markets being shut yesterday for a bank holiday. The Japanese yen reached the lowest level against the US dollar since June 2010 and the lowest since May 2011 against the euro. The Japanese yen remains under immense pressure as traders being to speculate who will be appointed as the next chief of the Bank of Japan. The Canadian dollar also suffered yesterday, whilst the Swiss franc weakened to 1.2277 against the euro - the lowest level since December 2011 - as market confidence in the eurozone surges. Today there is no significant data released today, but, volatility remains high so call in and check with our traders for the latest consultations and up to the second rate.

Smart Daily Currency Note | Euro close to 1.20 against sterling

Sterling

We are approaching a key support level of 1.20 against the euro as sterling continued its bad week on Friday dropping for a sixth consecutive day against the euro falling to 1.2060 - the lowest since April 2012 - following the release of terrible manufacturing production data which showed it shrinking by by 0.3 % when growth of 0.5% had been anticipated. More negativity came as the National Institute of Economic and Social Research (NIESR) predicted that the UK's economy contracted by 0.3% percent in the fourth quarter, increasing the fears that the UK is slipping back into recession. There is not a great deal of data expected to be released today; but, we may well see some volatility tomorrow as the markets react to the monthly release of Consumer Price Index (CPI) inflation data - the UK's headline inflation reading. On Friday we will have the retail sales data and report  released which will show us December's consumer spending and could well affect sterling's strength if we see another weak reading. Sterling suffered its biggest weekly loss against the euro in almost a year last week as the fragile state of the UK's economy started to be reflected in the markets, call in now to see how this trend may continue.

Euro

The euro performed well on Friday as confidence in the region continued to increase with falling interest rates on Spanish government bonds. The euro reached an eight month high of 1.2060 against sterling, whilst peaking at 1.3350 against the US dollar. It is a relatively quiet week on the data front in Europe with the benchmark 10-year bond auctions from France and Germany being the main events. Alongside this we have the European Central Banks monthly bulletin as well as inflation data. Call in now to for an up to data market information.

US dollar

The US dollar had a mixed day on Friday as data released showed that the US trade deficit was wider than expected. The Chairman of the Federal Open Market Committee is speaking this week, as well as several other of members and traders will pay close attention to what they have to say following the release of last months FOMC meeting minutes which revealed that several members suggested that they wanted to tighten monetary policy at some point in 2013. There is a raft of other days out this week including retail sales figures, inflation data and consumer confidence statistics. Moreover, we will see the release of building permits data, a manufacturing survey of economic health and the weekly change in the number of people claiming unemployment benefits. With so much data released this week, call in to see how this may affect the markets.

Worldwide

Elsewhere, the Japanese yen struggled on Friday as traders continued to speculate that the Bank of Japan will look to loosen monetary policy; furthermore, that the central bank may look to raise its inflation target to 2%. Worse than expected Swiss inflation data - showing prices deflated by 0.2% - caused the Swiss franc to be sold off, with the euro strengthening to 1.2170 against the Swiss franc. Chinese inflation data released on Friday was slightly higher than expected as was a surge in exports; however, some analysts are suggesting these figures could be unreliable. It should be a quiet day in Japan as the banks will be closed in observance of Coming-of-Age Day. The main data released this week includes Australian employment figures, New Zealand inflation data and Chinese GDP data. Call in now for a live price and a market up date.

Smart Daily Currency Note | The euro has a good week

Sterling

Sterling has had a mixed week, falling to 1.2175 against the euro  yesterday, very close to an eight month low; but climbing to 1.6160 against the US dollar. Sterling struggled in the early part of the week reaching a one month low against the US dollar as talk of a triple drip recession rippled through the markets following comments from David Cameron conceding that the UK was facing tough times ahead. Yesterday the Bank of England voted as expected to keep interest rates on hold at 0.5% and current levels of quantitative easing maintained. Today will see the release of important manufacturing production data which should give a strong indication of the relative strength of the sector as a whole. With sterling struggling against the euro and recovering versus the US dollar, call in now to speak to your trader to see how these trends may change in the upcoming days and weeks.

Euro

After poor economic data weighed on the euro in the first half of the week, it  enjoyed a particularly strong day yesterday. This strength followed Mario Draghi, president of the European Central Bank, optimism about the economic future of the Eurozone and said that the decision to hold interest rates at 0.75% was a unanimous one. The euro strengthened by over 1.2% against the dollar, and 0.65% against sterling on the back of the news. There is little data released today, but after Spanish government bonds value surged yesterday reducing their effective interest rates, traders will be more interested than usual in the Italian bond auction this afternoon. Decreasing bond yields would mean cheaper borrowing costs for the Italian government as well, a strong sign that Mr. Draghi's optimism is not unfounded and that recovery is on its way. Get in touch now for the latest news, and up to the second rates. 

US dollar

The US dollar had a poor start to the week, slipping against both sterling and the euro as the US markets focused on the start of the fourth quarter earnings season with little else released to influence the markets. The US dollar strengthened on Tuesday as risk aversion began to drive the market, partly due to the message from the Bipartisan Policy Centre which said the US government will struggle to pay its bills by mid-February, meaning there is less time to solve the spending cuts problem than expected. Little data has been released this week apart from the weekly change in the number of people claiming unemployment benefits which rose by more than expected. The US trade balance data released today and will closely watched by traders. On a final note, the resolution to the highly topical fiscal cliff situation now seems to have been somewhat forgotten as the markets focus on other problems that lie ahead. Call in now to talk to your trader and get a live market quote.

Worldwide

Elsewhere, the South African rand has had a very poor week as protesters have caused more problems, this time for farm owners. The rand bucked the trend of other commodity backed currencies like the Australian and New Zealand dollar that have broadly gained. The Indian rupee gained yesterday as traders bet on the central bank cutting interest rates later this month as the economy appears to recover. Today, consumer price index data is released from both China and Switzerland. This important inflation indicator has come in worse than expected for the past two months from both countries, so good news could give a boost to prices. Get in touch now for a price.

Smart Daily Currency Note | The euro has a good week

Sterling

Sterling has had a mixed week, falling to 1.2175 against the euro  yesterday, very close to an eight month low ; but climbing to 1.6160 against the US dollar. Sterling struggled in the early part of the week reaching a one month low against the US dollar as talk of a triple drip recession rippled through the markets following comments from David Cameron conceding that the UK was facing tough times ahead. Yesterday the Bank of England voted as expected to keep interest rates on hold at 0.5% and current levels of quantitative easing maintained. Today will see the release of important manufacturing production data which should give a strong indication of the relative strength of the sector as a whole. With sterling struggling against the euro and recovering versus the US dollar, call in now to speak to your trader to see how these trends may change in the upcoming days and weeks.

Euro

After poor economic data weighed on the euro in the first half of the week, it  enjoyed a particularly strong day yesterday. This strength followed Mario Draghi, president of the European Central Bank, optimism about the economic future of the Eurozone and said that the decision to hold interest rates at 0.75% was a unanimous one. The euro strengthened by over 1.2% against the dollar, and 0.65% against sterling on the back of the news. There is little data released today, but after Spanish government bonds value surged yesterday reducing their effective interest rates, traders will be more interested than usual in the Italian bond auction this afternoon. Decreasing bond yields would mean cheaper borrowing costs for the Italian government as well, a strong sign that Mr. Draghi's optimism is not unfounded and that recovery is on its way. Get in touch now for the latest news, and up to the second rates. 

US dollar

The US dollar had a poor start to the week, slipping against both sterling and the euro as the US markets focused on the start of the fourth quarter earnings season with little else released to influence the markets. The US dollar strengthened on Tuesday as risk aversion began to drive the market, partly due to the message from the Bipartisan Policy Centre which said the US government will struggle to pay its bills by mid-February, meaning there is less time to solve the spending cuts problem than expected. Little data has been released this week apart from the weekly change in the number of people claiming unemployment benefits which rose by more than expected. The US trade balance data released today and will closely watched by traders. On a final note, the resolution to the highly topical fiscal cliff situation now seems to have been somewhat forgotten as the markets focus on other problems that lie ahead. Call in now to talk to your trader and get a live market quote.

Worldwide

Elsewhere, the South African rand has had a very poor week as protesters have caused more problems, this time for farm owners. The rand bucked the trend of other commodity backed currencies like the Australian and New Zealand dollar that have broadly gained. The Indian rupee gained yesterday as traders bet on the central bank cutting interest rates later this month as the economy appears to recover. Today, consumer price index data is released from both China and Switzerland. This important inflation indicator has come in worse than expected for the past two months from both countries, so good news could give a boost to prices. Get in touch now for a price.

Smart Daily Currency Note | Poor data from the Euro zone doesn't help sterling

Sterling

Sterling struggled again yesterday dropping to a near one month low against the dollar, and continuing its decline against the yen as increased risk appetite lent support to the so called safe haven currencies. Continued market worries about the threat of a UK triple dip recession also undermined sterling. With the spotlight on the UK's economic health, today's Trade Balance data takes on a greater importance than it might normally do. The gap between import and export values is expected to close somewhat after disappointing results last month. If it exceeds expectation we are likely to see sterling rally a bit. Get in touch for the most up to date price, and the latest news. 

Euro

The euro struggled yesterday, giving back the advancements made earlier in the week. This resulted in the euro slipping back below the 1.310 mark against the USD.  A raft of poor middle tier data was released including retail sales figures falling short of the markets expectations posting a monthly increase of only 0.1%, German factory orders fell by 1.8% when a 1.4% drop had been anticipated and rumours spread that France could potentially have its credit rating further downgraded. Most damning though to the state of the Eurozone economy as a whole was the data released showed that the Eurozone unemployment rate had reached 11.8% - a record high - with 18.8 million people unemployed across the Eurozone. With the outlook of the euro regions looking increasingly bleak, the currency may weaken further as the week progresses. The focus will remain upon whether or not the European Central Bank (ECB) will decide to cut interest rates by 0.25%; but, the general consensus is still that the ECB will still hold rates at 0.75%. Industrial Production data will be released from Germany today alongside the Euro-area wide final GDP figures  which are expected to show the Eurozone remains in a recession with a figure of  -0.1%. To find out how the general outlook of the euro zone will affect the euro, call your trader now for a market update and a live quote.

US dollar

The US dollar performed well yesterday as risk aversion dominated the market, partly due to the message from the Bipartisan Policy Centre which said the US government will struggle to pay its bills by mid-February meaning there is  less time to solve this problem than many realise. Little important data released today implies the market may stay stable; however, history shows that the currency of the world's largest economy generally strengthens in January and February following a US election and this has been true to date. Crude oil inventories and a benchmark 10-year bond auction is the only data out of note in what is otherwise a quiet day for the US. Get in touch now for the latest news and rates.

Worldwide

Elsewhere, as risk appetite diminished and traders sold off Japanese yen positions to consolidate profits we saw the Japanese yen stage a small rally, strengthening against most of its counter parts . New Prime Minister Abe is expected to undertake a broad swathe of stimulus measures designed to bolster the economy, but the recent recovery indicates that traders think that has already been priced into the market. The Swedish krona was the worst performing currency yesterday struggling against all the majors as Decembers central banks minutes revealed it may look to cut interest rate again in the near future. After recent gains based on increased commodity prices, Australian dollar weakened on the back of a larger than expected trade deficit - the largest since 2008. The weakness looks set to continue as markets wait on news of a possible cut in interest rates. Conversely, rumours have been spreading that the Reserve Bank of New Zealand could look to raise interest rates in the near term. The Canadian dollar also ended a three day upward trend due to decreasing oil prices - the country's main export - and decreasing risk appetite dragged down prices. Retail sales data from Australia was released over night and over the coming days we will see Trade balance data from China be released. Call in now for the latest news and rates.

Smart Daily Currency Note | No "back to work blues" for the currency markets

Sterling

It was a mixed day for sterling yesterday. David Cameron admitted in the morning that economic times were tough, and that the UK needed low interest rates to continue, and the chatter of a potential triple dip recession returned to lips of traders across the market. As such, it was not all that surprising that sterling slipped off in value. While it pared off the losses against the dollar pushing up towards 1.61 in the late afternoon, it dropped back down below the 1.23 mark against the euro. Today is a quiet day for data, but expect talk of the "triple dip" to continue after last week's week manufacturing and services data. Get in touch now for the latest news.

Euro

The euro had a mixed day yesterday with little data was released within the Euro zone except investor confidence figures came our better than expected. Some economists are now starting to predict that the European Central Bank (ECB) may cut interest rates by 0.25% at this week's central bank meeting, although the general consensus is that the ECB will still hold rates at 0.75%. Out today, the most significant release  will include euro-area wide retail sales and unemployment data, German factory order and trade balance data from Germany and France.  These are all important indicators of the economic climate so call in now to hear how the data released has impacted the exchange rate.

US dollar

The US dollar struggled yesterday, slipping away from a near three week high against the euro and struggling across the board as the US markets focus on the fourth quarter earnings season which unofficially begins late tonight. With very little data out today, expect markets to continue to remain fairly range bound as traders wait for unemployment and trade balance data at the end of the week. Volatility elsewhere is likely to be the main driver in moving the US dollar, as traders wait on further monetary easing in Japan which could benefit the dollar. Get in touch now for the latest news and rates.

Worldwide

Elsewhere, one of the biggest movers of the day was the South African rand, losing ground versus the majority of its trading peers. Returning to work after their summer holiday, most South African import businesses took the opportunity to purchase foreign currency following a December rally; with the highest demand being for the US dollar. It was a better day for the Japanese yen, rebounding versus its major partners, and strengthening from a near 29-month low versus the US dollar on emerging speculation that the currency had been somewhat oversold. News that the Bank of Japan is likely to increase spending to improve economic performance also buoyed other currencies, with the Australian Dollar in particular benefitting on the back of this news. The main data release yesterday saw slightly better than forecast PMI data from Canada, although the effect was fairly muted - with only minor gains versus its US counterpart. Overnight saw the release of the latest Australian trade balance, so call in now for the latest update and to get a live price.

Smart Daily Currency Note | No "back to work blues" for the currency markets

Sterling

Sterling had a difficult week last week, initially gaining ground but then struggling in the second half of the week. Against the US dollar on Friday it fell to 1.6020 having gained and then lost over three cents during the course of the week. Weaker than expected Services Purchasing Managers Index (PMI) data released on Friday, the first contraction in 2 years when a slight expansion had been expected, likely drove the decline given how significant the services sector is to the UK economy. Furthermore, more weak data was released in the form of the supply of money and the net lending to individuals. We are likely to see some volatility in the back end of the week as three important releases are made. On Thursday, following the Bank of England meeting, an announcement on quantitative easing and interest rates will be made. No change is expected in either. On Friday we will see the release of monthly Manufacturing data which is forecast to show a swing to the positive for the first time in four months, if so, this could well drive some value into the struggling pound. Get in touch now for an up to the second exchange rate.

Euro

After a poor week, it was a broadly strong day on Friday for the Euro. While it hit a three week low against the dollar in the early morning, the tide turned on the negative trend of the week with rates picking up across the board as Europe wide Services purchase managers indices (PMI) data came out as expected, with the Spanish and Italian readings slightly better than forecast. In a week that doesn't see much influential data released, the biggest news comes on Thursday as the European Central Bank announce, then hold a press conference on, their interest rates - the most fundamental factor in currency valuation. Any change to the rate is extremely unlikely, so markets will react dramatically if anything does change. Get in touch now for the latest news from the weekend, and the most up to date rates. 

US dollar

The US dollar started Friday in the ascendency, strengthening against all of its major peers following the release of the Federal Open Market Committee meeting minutes on Thursday. The minutes revealed that several members suggested that they wanted to tighten monetary policy at some point in 2013 as they feel the effectiveness of continued loose monetary policy dwindles. In fact there is a fear that extending it could be inflationary.  The US dollar struggled to keep up this momentum in the afternoon following data showing the overall unemployment rate rose from 7.7% to 7.8%. Furthermore, the highly influential Non-farm payrolls data came out slightly better than expected; but, disappointed many traders who were hoping for a big jump following Thursday's positive payrolls release. In other news, Services Manufacturing PMI came out much better than expected. It is a fairly quiet on the data front this week with Trade balance data released and the weekly release of the change in the number of people claiming unemployment benefits is also announced. The dollar is performing well following a poor start to the week, call in now to see if the trend will continue.

Worldwide

Elsewhere, the Japanese yen was once more the worst performing currency yesterday, weakening to its lowest level against the US dollar since July 2011 on what is its longest losing streak for 24 years. Canadian employment data released was much better the than expected with an additional 39,800 employed compared to last month when only an extra 4,000 had been anticipated; moreover, the overall unemployment rate dropped from 7.0% to 7.1%. Out this week we have a raft of data released; including Trade balance data from China, Australia and Canada. Other data out from China includes Manufacturing PMI and inflation data; Australia sees additional retail sales and building approvals data; Canada also announces building permits figures; Swiss inflation data will be produced and Japan will release its current account figures. Call in now for the latest news and to get a live price.

Smart Daily Currency Note | New Year starts with a bang

Sterling

Sterling had a positive start to the week, strengthening across the board on Monday in the run up to the New Year bank holiday, correcting the excessive drop off in sterling's value over the Christmas period. Following the announcement early on the 1st of January that a deal had been struck to stop the US tumbling over the so-called fiscal cliff, sterling jumped to a 16 month high of 1.6380 against the US dollar and rising above 142 versus the yen as risk appetite returned to the market. This risk rally saw stock markets across the globe rally including the FTSE breaking above the 6000 level for the first time since July 2011, whilst commodity backed currencies performed well in the foreign exchange markets. Since then, sterling has lost three cents against the US dollar and dropped sharply against the Japanese yen as economists start to doubt the benefits of the US fiscal cliff deal. On the data front, strong UK Manufacturing Purchasing Managers Index (PMI) data were released providing a boost for the UK following several months of decline, posting an expansionary figure of 51.4 when a contraction figure had been anticipated. On the downside, Construction PMI data released yesterday came out worse than expected.  Services PMI figures will be the main release today alongside information on the supply of money and the net lending to individuals. Call in now to see how sterling will fare as trading volumes start to pick up.

Euro

What a difference a week makes as sterling gained nearly two cents and the US dollar gained over two cents against the euro. This was despite it being relatively quiet in terms of data and news released from the Eurozone. Key points to note would be the German Chancellor saying in her New Year's speech that the debt crisis in Europe is "far from over". Further gains for the euro are restricted due to fears surrounding the debt crisis and weak euro zone economy in general, as well as dissatisfaction in the US fiscal cliff deal. Data also showed that factories in the euro zone fell deeper into recession, highlighted by poor Spanish and Italian Manufacturing PMI figures, they have been receding since August 2011. The ECB also said that private sector loans have also shown a contraction for the seventh month running in November. However on a more positive note, both German and Spanish unemployment change came out better than forecast yesterday. Today we will see the release of Spanish and Italian Services PMI data as well as German Retail Sales. Call now for the latest rates and updates.

US dollar

What a roller coaster week for sterling against the US dollar as sterling gained three cents at the start of the week and has now given back those gains by Friday morning. This highlights the importance of being up to date on what is happening in the market and being able to act quickly. The fiscal cliff continued to dominate the political and economic landscape stateside this week. Despite a deal being reached at the very last minute, it looks set to continue to loom over affairs for some time to come. Uncertainty reigned in the early half of the week, before risk appetite flooded back on the news of the deal - the dollar dropping to the lowest it has been against the pound since Summer 2011. It soon became clear, however, that the weeks of negotiations and political brinkmanship have not lead to a substantial deal at all, and the threat has simply been delayed. Obama's administration is now faced with the greater challenge of the so-called sequester of $109 billion due to kick in on March 1 in addition to re-negotiating the debt ceiling, and extending the law that keeps the government funded . As such, confidence in the long term effect of the deal dropped off and the value of the dollar, a safe haven asset in times of uncertainty, rose. Today sees the release of further unemployment data, which takes on an increased importance after last week's announcement that  monetary policy would remain loose until the labour market recovers. Get in touch with your trader today to get the most up to date rates.

Worldwide

Elsewhere, it was very much a week of two halves, as a significant play-off between risk appetite and risk aversion saw substantial fluctuations in demand between the traditionally riskier and safer currencies. It does seem impossible to keep the Japanese yen out of the headlines, and once again the currency saw a dramatic swing; falling to 2-year lows versus both the US dollar and sterling, before rebounding yesterday thanks to a return of risk-aversion across the markets. Both the Australian and New Zealand dollars enjoyed significant gains throughout the week as a result of improved economic confidence surrounding the US in the immediate aftermath of Fiscal Cliff negotiations. The major data release yesterday saw slightly better than expected PMI data, albeit coupled with reduced economic confidence. Tomorrow sees key employment data released from Canada, where the dollar has also enjoyed a strong week -almost touching a two week high versus its US counterpart and gaining over two cents against sterling. Call in now for the latest news and to get a live price.

Smart Daily Currency Note | Fiscal cliff still looms

Sterling

It proved once more to be a mixed day for sterling as the immediate aftermath of the successful Fiscal Cliff negotiations saw significant movements versus its major trading peers. Increased levels of risk-appetite helping sterling touch a 16-month high versus the US dollar, whilst also rising above 142 versus the yen - the highest since May 2010, before seeing a reversal in the afternoon. It is worth noting that these movements may well be exaggerated due to low trading volumes in his holiday season. Furthermore, stock markets across the globe rallied including the FTSE breaking above the 6000 level for the first time since July 2011. It was a different story versus the higher-yielding currencies, losing significant ground versus the Australian, New Zealand and Canadian dollars. The release of better than expected Manufacturing Purchasing Managers Indices (PMI) data with a figure 51.4 - anything above 50 represents growth -  was a reassuring sign for the British economy, following several months of decline in the sector. Today sees the release of Construction PMI data, and with it forecast to remain below the crucial 50 level, any news that comes out better than expected is likely to increase economic confidence and demand for sterling. Call in now for the latest news and to get a live rate.

Euro

The euro had a mixed day yesterday rising to the highest level in two weeks against the US dollar of $1.3299, close to its 8 month high, before dropping to 1.3160. Increased risk appetite in the markets and positive German preliminary inflation data drove the euro higher against the dollar in early trading. Further gains for the euro were limited due to fears surrounding the weak euro zone economy in general and the markets dissatisfaction in the US deal. Data released showed that factories in the euro zone fell deeper into recession, highlighted by poor Spanish and Italian Manufacturing PMI figures. Italian PMI data came out better than expected but still showed a significant contraction while Spanish PMI showed a bigger contraction than forecast. The Euro-area wide manufacturing PMI has been in contraction since August 2011. Today we have German unemployment data and the change in the level of Spanish unemployment which could lead to significant movements in this holiday period, so call in now for the latest updates and rates.

US dollar

Risk appetite returned to the markets today in abundance as the fiscal cliff was, if only temporarily, avoided. The US dollar hit a 16 month low against sterling in the early morning as the desire for safe haven assets dropped dramatically as markets expressed their relief over the fiscal cliff deal. The rates were short lived however, slipping back towards the 1.6250 mark in the afternoon as traders seemed to realise the true nature of the deal. While a deal has been reached on tax on high earners, the question of spending cuts hangs over Obama's administration until February. Today, the driving force is likely to continue to be the same risk appetite as well as employment data released in the afternoon. This evening also sees the release of the minutes of the recent Federal Open Market Committee (the American equivalent of the Monetary Policy Committee in the UK) meeting on interest rates. Last month's decision was to keep monetary policy loose until the labour market recovers and market reaction is likely to be muted. Get in touch now for the latest news and prices.

Worldwide

Elsewhere, the biggest mover once again was the Japanese yen, dropping sharply in early trading against all of its major counter parts as risk appetite drove the market before recovering in the afternoon. The Australian dollar, New Zealand dollar, and Canadian dollar all made significant gains in early trading. The Hungarian forint struggled yesterday as data released showed that manufacturing had shrunk by the most in last eight months. Today it is a bank holiday in both Japan and China so trading volumes will remain lower than normal. On the data front we have Swiss economic confidence and PMI figures. Call in today for a live rate from your trader.

Smart Daily Currency Note | Happy New Year as the US pulls back from the fiscal cliff

Sterling

Sterling had a good day on Monday strengthening across the board. This seemed to be on the back of markets correcting an excessive drop off in sterling's value over the holiday period. Sterling reached a peak of 1.233 against the euro and has pushed past the 1.630 mark against the US dollar as risk appetite increased with the US pulling back from the "fiscal" cliff.. Today sees the release of the Purchasing Managers Indices (PMI) data for the UK manufacturing sector and the markets will be hoping for the first positive swing in the last 6 months which could well back up Monday's positive trend for sterling. Get in touch with your trader today to find out where exchange rates are heading as trading volumes increase again.

Euro

The euro struggled on Monday as the German Chancellor said in her New Years speech that the debt crisis in Europe is "far from over". The only actual data of any significance released on Monday saw Greek retail sales fall 17.1% from a year earlier. Markets were shut yesterday for New Year's but today we will see the preliminary German inflation data released as well as manufacturing PMI data for both Spain and Italy. Get in touch now to get the most up to date price.

US dollar

The US dollar struggled on Friday as risk appetite dominated across the global markets due to increased expectation of a deal being being made to stop the US tumbling over the so-called fiscal cliff. Late last night, the House of Representatives signed off on a deal which avoided the $536 billion worth of tax increases and $109 billion worth of spending cuts automatically being implemented despite a large number of Republicans rejecting the bill. The $109 billion worth of spending cuts that were due to come into effect have been delayed for two months to allow for more time. A deal was struck regarding the tax increases which included income tax cuts for those that earn less than $400,000, much more than the $250,000 the Democrats were seeking to allow. Furthermore, deals were agreed regarding inheritance tax, capital taxes, unemployment benefits and tax credits, all of which will help avoid the fiscal squeeze that many economists thought would have pushed the US back into recession. Manufacturing PMI data will be released today alongside data on construction spending and inflation data related to the manufacturing industry. Call in now to see how the US dollar will react now that the fiscal cliff has been avoided.

Worldwide

Elsewhere, the headlines were once more dominated by the Japanese yen, continuing to lose ground versus its major peers. Continued speculation that the Bank of Japan are set to increase quantitative easing saw demand for the currency fall throughout the day. It was a better day for the Canadian dollar, gaining the most it has in a month versus its US counterpart, as increased levels of risk-appetite throughout the day saw demand for riskier assets increase. As would be expected Monday saw the release of very little data, with Australian Private Sector Credit coming out slightly worse than forecast, and Chinese Manufacturing PMI showing a slight improvement at 51.5. We saw the release of more Chinese Manufacturing PMI data yesterday; but, there is very little data expected out today. Call in now for the latest news and a live price.