The new Governor designate speaks today, how will Sterling react? | Smart Daily Currency Note

Sterling

Overall sterling had a relatively positive day yesterday, rising slightly against 14 of its major currency partners, whilst remaining relatively flat against the US dollar. Market speculation which suggests the next Governor of the Bank of England (BoE) - Mark Carney - will make major efforts to boost the economy once he comes into office in July seems to have put some confidence back into sterling in spite of the possibility of increased quantitative easing. This morning sees a speech from Mr Carney which could cause a great deal of volatility in the markets as traders react to clues as to what path he will look to steer the central bank down during his tenure as Governor. Later on we will have the decision on quantitative easing and interest rates from the BoE, both of which are widely expected to remain unchanged. Sterling remains under a lot of pressure, so call in now to see how it may react in a busy day on the currency markets.

Euro

The euro reverted back to Monday's state yesterday, falling against sterling and the US dollar, due to the underlining political uncertainty that remains in Italy and Spain. This weakening was echoed across the board as the European Central Bank policy makers prepare to meet later on today amid the political and banking turmoil that currently persists. The ECB press conference that follows could cause some jitters in the market following the recent call from the French President to devalue the euro to make it more competitive. It is a busy day all round for the euro today, with a wide selection of market data being released including German Industrial Production data and France's 10 year bond auction. Call in now for the latest update and for a live market quote.

US dollar

The US dollar had a broadly strong day yesterday, pushing to the highest levels in a week against the euro - gaining back nearly 0.5% recently lost as Obama sought to limit the size of the super cliff by addressing matters before it really comes to a fore. While today will be dominated by news from its major peers of Europe and the UK, unemployment data in the afternoon is expected to show a drop - undoubtedly good news for the US economy and further diminishing the likelihood of the central bank engaging in more monetary easing. With so much uncertainty elsewhere, the US dollar seems to be trading somewhat on the side-lines at present; but, recent positive news and data is helping to push the US dollar up against the majority of its peers. Get in touch now for the latest news and prices.

Worldwide

Elsewhere, the Czech koruna was yesterday's biggest mover, gaining 0.7% against both the US dollar and sterling whilst appreciating by 1% against the euro. This strength was attributed to the central bank's decision not to intervene in the currency market to loosen monetary conditions; but, decided to keep interest rates at effectively zero for a second meeting running. It was a different story for the Polish zloty, which declined 0.9% yesterday against the US dollar as monetary policy makers cut interest rates for a fourth consecutive month in an attempt to avert the biggest economic slowdown for more than 10 years. On a final note, the Australian dollar declined across the board after retail sales fell in December - adding more speculation that the Reserve Bank may cut interest rates next month. Late last night we saw the release of key employment data from New Zealand, early this morning we have data released from Switzerland showing the level of Foreign Currency Reserves and this afternoon, we have building permits data released from Canada. For an update on the markets and a live market quote, call your trader now.