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.