Sterling gains slightly against the euro | Smart Daily Currency Note

Sterling

Sterling finally enjoyed a little respite yesterday, notably gaining nearly a cent against the euro and trading back above the 1.15 mark for most of the day. The relief came after five days of negativity as markets began to view sterling as undervalued in light of speculation that next week's budget will delay fiscal austerity measures. Today is once again quiet on the data front, but with markets and the news full of chatter about Mr Osborne's budget next week we could see volatility nonetheless. With some analysts even citing 1.50 as a new high point for the US dollar rate, sterling is certainly not out of the woods yet. Get in touch for the latest news and up to the second rates.

Euro

The euro struggled yesterday, dropping across the board on the back of worse than expected industrial production figures, notably falling a cent against the US dollar to well below the 1.30 mark – a three month low. An unsuccessful Italian debt auction underlines the apparent instability in the region, and further weakened the single currency. Today is the first day of the EU economic summit, so we can expect some volatility as markets react to news, particularly after MEPs yesterday rejected the ground-breaking budget proposal spearheaded by David Cameron. Get in touch for up to the second rates, and breaking news from the summit.

US dollar

The US dollar performed well yesterday on the back of better than expected retail sales data for February being released in the morning. The US dollar strengthened to a three month high against the euro, ending the day in London below 1.30 despite showing some signs of recovery towards the end of the day. There was no significant change in the sterling-dollar rate. Today sees the release of more unemployment data from the states. Positive unemployment data has recently boosted the US dollar as the world's largest economy continues on the road to recovery. The monthly producer price index is also expected to contribute towards the US dollar's continued ascent when it is released this morning. Call in now for the latest live rates and information.

Worldwide

Elsewhere, the Hungarian forint gained some ground yesterday for the first time in four days after comments from the vice governor of the central bank said the recent weakness was “unwelcome”. The New Zealand dollar dropped against the majority of its peers in advance of last night’s central bank policy meeting where it held interest rates. Today all eyes will be on Australia with key employment data coming out with the unemployment rate expected to rise to 5.5%. The Swiss franc continued to perform well yesterday in advance of today’s Swiss Central Bank policy meeting. Call in now for a live quote.