Sterling gains ground across the board | Smart Daily Currency Note

Sterling

Sterling performed strongly yesterday, gaining sharply on both the euro and the US dollar. This was thanks largely to strong services Purchasing Manager Indices (PMI) data, showing the sector had expanded in July greater than expected. These results added to signs that the economic recovery is gathering pace, and was duly reflected in the strength of the currency. This being said, the market will remain little tentative before hearing the inflation statement from Governor of the Bank of England this coming Wednesday, where he will outline plans for forward guidance on interest rates. Before this, today see's the release of UK monthly manufacturing production data, and as such could see further movement for the currency. Call your trader today for the latest prices on sterling during an important week for it.

Euro

Yesterday was a relatively quiet day for the euro as it responded to mixed data. The seventeen-nation currency lost ground sharply against sterling in response to sterling strength and weakened slightly against the US dollar. Eurozone investor confidence data came through significantly worse than expected during the morning spurring a moderate decline, however the day's other key data sets were largely positive and caused the euro to steady throughout the rest of the day. Spanish and Italian Services PMI data, which while both indicating a contraction, were revealed to be marginally better than expected. Similarly, monthly retail sales figures were down, but not by quite as much as predicted. This morning, euro performance may be affected by Italian second quarter preliminary growth figures as well as German monthly factory orders data. With more positive economic news emanating from the US and UK, traders will need to see some signs of economic recovery in Southern Europe in order for the euro to keep pace with its major trading partners. Call your trader now to keep track of euro performance.

US dollar

Yesterday was a mixed day for the US dollar, falling against sterling and the Japanese yen. Losses for the currency, however, were curtailed thanks to non-manufacturing PMI data released, showing that the service industries in the US had expanded ahead of expectations. At the same time, gains were seen for the currency against the Euro. Speculation on when the Federal Reserve will begin their tapering program still occupies investors, and will continue to affect the performance of the currency – especially in light of comments from one of the members of the Federal Reserve who yesterday suggested that the central bank should start to taper in September. Today's most important release for the currency will be the trade balance, due out at 1.30pm, and this will likely have a noticeable impact on the strength of the currency, while later on this afternoon another member of the Federal Open Market Committee is speaking. Get in touch with your trader today to get the latest price on the US dollar.

Worldwide

Elsewhere, eyes were on the Antipodean nations, where both the New Zealand and Australian dollars struggled yesterday. In New Zealand the slide was a response to Fonterra Group, the New Zealand-based, world's-largest milk exporter, confessing that a recent batch of exports were infected with a deadly bacteria. This in turn lead to China and Russia imposing import halts on all dairy products coming out of New Zealand. With the dairy industry accounting for some 25% of New Zealand's total exports, the news had a marked impact on the trade-reliant nation's currency. The Australian dollar also struggled, sliding to near three-year lows against the US dollar. The slide was attributed to retail sales coming in worse-than-forecast, boosting odds for interest rate cuts being implemented by the Reserve Bank. Overnight we saw the Reserve Bank of Australia cut interest rates by 0.25% and we saw a slight rebound in the value of the Australian and New Zealand dollars but these gains could be short lived as their problems seem to be growing. The Japanese yen performed well yesterday, as investors bought in to the safe-haven currency following uncertainty in the markets – pushing the yen up to four-day highs against the US dollar. Today, we have influential trade balance data out of Canada, and late this evening we have quarterly unemployment data out of New Zealand. Get in touch for the latest rates.

Sterling steady as we await UK Growth data tomorrow | Smart Daily Currency Note

Sterling

Sterling traded within a narrower range yesterday as we saw a decrease in volatility across the currency markets. The pound has made reasonably consistent gains since last week's Monetary Policy Committee meeting minutes were released. A report from the British Bankers' Association released yesterday morning showed that UK mortgage approvals increased during June, although this increase was marginally lower than expected. As a result, the data had little overall effect and sterling made good the slight losses it experienced earlier in the day against the US dollar and weakened very slightly against the euro. Preliminary UK growth data for the second quarter will be released tomorrow and is likely to have a strong bearing on performance as investors look to ascertain how much faith to put in a sustained economic recovery for the UK. Ahead of that, the Confederation of British Industry releases data detailing expected industrial orders over the next three months this morning, which may also have cause a degree of volatility. Call in now to see how sterling reacts. 

Euro

The euro performed reasonably well yesterday, making modest gains against sterling and the US dollar. Consumer confidence data came through marginally better than expected, which fared well for the single currency. Having experienced little in the way of influential data coming from the Eurozone when compared with the UK and US, today sees a buck in the trend as investors will look to German and French Flash Manufacturing data as key indicators of economic strength. Marginal contraction is predicted in both countries, however varying figures, especially emanating from Germany could give rise to sharp movement. Call in now to see how to track the reaction from the euro. 

US dollar

After a tough few days for the US dollar following on from the Chairman of the Federal Bank’s report to Congress last week, yesterday provided some respite. The dollar saw little movement against sterling and weakened slightly against the euro. A Bloomberg survey of leading economists revealed that that around half of those surveyed believed that the Federal Open Market Committee (FOMC) would reduce the pace of bond-buying by $20 billion per month in September. Such a result would boost dollar performance in the medium term, but is by no means assured at this stage. Furthermore, it may still be some time before interest rates are increased following any reduction of asset-purchasing and whilst the outlook is generally positive for a US recovery in the long term, it may be some time before we see any substantial dollar rally. Whilst uncertainty reigns, speculation by key figures and incoming economic data releases will continue to cause volatility. One of such releases will be occurring this afternoon and comes in the form of New Home Sales data from the US. Monday's Existing Home Sales data contributed to dollar weakness on Monday and traders will look to today's figures as a further indicator of economic strength or lack of economic strength. Call in now to keep pace with market movements.

Worldwide

Elsewhere, the big mover yesterday was the Canadian dollar. The Canadian currency showed notable gains against the majority of its most-traded peers as a result of significantly better than expected retail sales data. The retail figures showed an impressive 1.9% increase in May, the biggest monthly jump in 3 years, quadrupling the 0.4% projections. These figures, off the back of strong wholesale and manufacturing figures last week, all point toward less slack for the Bank of Canada to continue its generous monetary policy. The Japanese yen, after a strong day yesterday, tumbled against all of the majors as certain over-exuberance receded following the weekend's election result, in which fiscal and monetary policy stimulus supporter, Shinzo Abe, was given the nod from the populace. Overnight we saw trade balance data out of Japan and New Zealand, as well as Australian inflation data. This evening we also have short term interest rate decision out of New Zealand. Get in touch for the latest rates.

Will sterling benefit from the birth of a Royal baby? | Smart Daily Currency Note

Sterling

Even before the announcement of a new Royal baby and the third in line to the throne, Sterling continued its upward trajectory yesterday as hopes for a sustainable economic recovery in the UK increased ahead of Thursday's second quarter Growth figures. The pound made gains against the majority of its major trading partners and most notably continued to strengthen against the US dollar for the fifth day in a row as it was traded at the highest rate since June. Prime Minister David Cameron announced that improving economic conditions may allow the Coalition Government to implement tax cuts in the near future, lending further weight to sterling optimism. Thursday's Growth data will be integral in determining whether we see sterling continue to appreciate. Further growth would lend support to the pound by giving credence to the notion of a sustainable economic recovery for the UK. Predictions range from around 0.3% to 0.8% growth, with most key figures expecting 0.6%. Speculation ahead of the release will continue to affect sterling performance and solid growth figures are likely to help sterling maintain its strong recent performance, but bear in mind that if the figures undermine the positivity seen in recent days then we are likely to see a sharp decline. Additionally, this morning sees the release of Mortgage Approval data from the British Bankers' Association, which has the potential to have a more immediate impact on performance. Call in now to see whether sterling strength has continued.

Euro

The euro's performance was largely dictated by events elsewhere yesterday as it made moderate movements to strengthen against the US dollar – reaching its highest level in a week – and weaken against sterling. The seventeen-nation currency derived some support from news that Portuguese Prime Minister Pedro Passos Coelho and his Government will remain in office for their full term as opposed to having to face elections which would have put the Portuguese compliance with their bailout plan in jeopardy. This is certainly positive news for the Eurozone, but perhaps did not have a strong an impact on the markets as events elsewhere. Not much influential data comes out today, but looking ahead to tomorrow, German and French flash manufacturing data will impact on euro performance. Call in now to track euro movement and for a live rate.

US dollar

The US dollar performed poorly yesterday as a combination of a persistent uncertainty regarding the possible tapering back of the bond-buying programme and worse than expected existing home sales data caused the dollar to slide against the majority of its major peers. As expected, the US dollar's sensitivity to economic data has increased following Ben Bernanke's expressed commitment to an accommodative monetary policy and the reaction yesterday was negative. Most notably the US dollar traded at its lowest rate this month against a resurgent sterling. Whilst there is not a great deal being released today in the way of influential data impacting on the world's largest economy, the temperamental dollar may still see movement in response to speculation regarding future monetary policy. Tomorrow sees the release of existing home sales data, which – as with the home sales data released yesterday – has the potential to cause further dollar volatility. Call in now to keep pace with dollar volatility.

Worldwide

Monday was a quiet day for the release of economic data elsewhere in the world. Sterling held its own or gained against the majority of other currencies as the feel good factor seems to be sticking to sterling for the short term. The main release today are the retail sales figures in Canada which are expected to show a modest improvement of 0.3%. Call in to see how the birth of a Royal Baby and the third in line to the throne is affecting sterling throughout the world!

Will Sterling's good run continue? | Smart Daily Currency Note

Sterling

Sterling ended last week on a largely positive note having risen for four days straight against the US dollar and made notable gains against the euro. Sterling benefited from the Monetary Policy Committee minutes released on Wednesday which showed all nine members voting against increasing quantitative easing. Sterling also received some support from Friday's Public Sector Net Borrowing data that revealed a slight reduction in the deficit during the month of June. Furthermore, a number of key figures predict that key UK GDP data due this Thursday will show an increase in growth during the second quarter giving performance an extra boost. Looking ahead to this week, the aforementioned GDP figures are likely to have a substantial impact upon sterling strength should they differ from last week's predictions. Outside of this, there is not a huge amount of data being released this week with the potential to impact performance. Mortgage approval data – a leading indicator of demand for housing – has the potential to have some influence when it is released on Tuesday, but the GDP data on Thursday along with on-going speculation on future monetary policy are likely to fuel market movement. Call in now to track sterling's performance this week.

Euro

The Euro stayed fairly range bound on Friday with no data of high impact being released. Although German Chancellor Merkel gave positive vibes whilst discussing the economy in Germany and the euro-zone, it had a muted effect on the markets. Perhaps with her looking for re-election in September, it was expected that she would remain optimistic. We have a quiet day again for the euro today, but with French and Germany manufacturing PMI data on Wednesday and Germanys Business Climate survey on Thursday, any unexpected data is likely to cause volatility for the currency. There are also increasing concerns for southern state debts and additional funding requirements. Portugal, Cyprus and Greece seem to be at the top of this list and could significantly increase instability for the Eurozone. So call your trade for the latest rates and updates.

US dollar

After a highly volatile week, the US dollar weakened on Friday on the back of on-going concerns about the tapering back of US asset-purchasing. Now that Fed Chairman Bernanke has stated that US monetary policy will be highly accommodative, the US dollar seems to be highly sensitive to new economic data and speculation amongst investors. Despite the fact that ratings agency Moody's upgrading the AAA credit rating of the world's largest economy from negative to stable, the currency lost ground against most of its major peers. Given the current sensitivity to new data, this week we can expect the release of Existing Home Sales data on Monday to spark movement as these figures serve as a leading indicator of economic health. Likewise, New Home Sales data on Wednesday is likely to have some impact on the dollar's performance. Finally, on Thursday traders will look to Unemployment claims data to reveal how the US is faring in its quest to meet unemployment targets. Expect plenty of volatility amidst a raft of data and on-going uncertainty about future monetary policy. Call in now to keep pace with market movements.

Worldwide

Elsewhere the Canadian dollar weakened on Friday following a government report showing inflation lower than the Bank of Canada’s target of 2%. The New Zealand dollar gained momentum with the People’s Bank of China (New Zealand’s largest trading partner) announced it is going to remove limits on lending rates. The Yen weakened against the US dollar leading up to upper-house elections in Japan, which will be closely watched. The South African rand also gained strength against the US dollar amidst doubts that the US may reduce stimulus as early as expected.  Today we have core retail sales from Canada and New Zealand trade balance figures. Tomorrow we will have Chinese Flash Manufacturing Purchasing Managers index along with New Zealand interest rate statement. Call now the latest news and updates. 

Another roller coaster week for sterling | Smart Daily Currency Note

Sterling

Sterling had a roller coaster week dropping to  a four month low against the euro and struggling against the dollar earlier this week as weaker than expected inflation data appeared to give the Bank of England more licence to keep monetary policy loose. This meant that all eyes were on Wednesdays release of the minutes from the first Monetary Policy Committee meeting with the new Governor Mark Carney in charge. What was revealed caught the market by surprise in that all 9 members voted in favour of maintaining the Bank of England's quantitative easing target instead of increasing it. This caused sterling to jump over a cent against the US dollar and euro as many key figures expected the vote to show several members (including the new Governor Mark Carney) to vote in favour of increasing the quantitative easing program, rather than the unanimous decision against this that was revealed. Sterling was also boosted by the news that unemployment claims had dropped by over 20,000 in June, whilst retail sales figures released yesterday came out as expected. This morning sees the release of UK Public Sector Net Borrowing data and a high deficit can have a negative effect on sterling's performance. Call in now to track developments.

Euro

It seems that the euro is not master of its own destiny this week as it continues to play a largely reactionary role whilst events in the UK and USA continue to dominate. The euro actually faired fairly well despite German economic sentiment proving to be worse than forecast. Current account data, showing the difference in value between imports and exports came in slightly worse than expected. Monthly German manufacturing data may impact performance of the single currency today. Additionally, it is worth noting that we have G20 meetings taking place on Saturday and discussions therein, may have implications for the euro and its major trading partners. Call in now for live rates and up to date information.

US dollar

The US dollar had a poor start to the week as retails sales figures came in much lower than anticipated. Whilst typical estimates put growth at 0.8%, the figures revealed growth to be only at 0.4%, underlining the fact that recovery has been less convincing in the second quarter for the US. Many had hoped for some clarity regarding when the Federal Bank may look to start tapering its quantitate easing program when the Chairman of the Federal Reserve addressed congress this week; however, the Chairman asserted that a tapering of bond-buying must be based on consistent economic data and that a slowing in asset-purchasing would be likely to happen if US inflation made a determined move towards the 2% target (which this week came out showing an inflationary figure of only 0.2%). Some respite came yesterday as employment data released showed a better than expected drop in US unemployment claims in the previous month. However, whilst Bernanke remains committed to an accommodative policy the US dollar may continue to oscillate until we see the cumulative positive data that the Federal Open Market Committee is looking for. After an eventful week, there is less provocative data on offer today, although given sharp movements we have seen in recent days, some further volatility is not implausible. Call in now to keep pace with market movement.

Worldwide

Elsewhere, the Canadian dollar dominated much of the headlines this week as it weakened on Monday alongside falling commodity prices. Whilst manufacturing sales figures came out as expected, the Bank of Canada (with its new Governor at the helm) suggested that the economy remained sluggish and all but ruled out a potential interest hike in the near future causing the Canadian dollar to weaken further still. The Australian dollar performed well following the release of the minutes from the latest Reserve Bank of Australia rate setting meeting which outlined the central banks sentiment that interest rates were at an appropriate level, henceforth, seemingly removing the possibility of another rate cut in the near term. The Polish zloty also performed well following new government plans that will widen the budget deficit in order to boost the economy. Core inflation data released out of Canada will be the main release on the agenda, but, call Smart today for the latest news, and live quotes, for your currency.

Sterling benefits from BoE surprise | Smart Daily Currency Note

Sterling

Sterling appreciated sharply yesterday morning in response to a double dose of positive data. The Monetary Policy Committee meeting minutes revealed a surprise 9-0 vote in favour of maintaining the Bank of England's quantitative easing target instead of increasing it. This caused sterling to jump over a cent against the US dollar and euro as many key figures expected the vote to show several members (including the new Governor Mark Carney) to vote in favour of increasing the quantitative easing program, rather than the unanimous decision against this that was revealed. Performance was further boosted by data showing that unemployment claims dropped by over 20,000 in June, a much greater reduction than predicted. Sterling continued to perform well yesterday afternoon, trading at 1.16 against the euro and hovering above 1.52 against the US dollar. This morning sees the release of monthly UK retail sales data, which has the potential to either check or reinforce today's optimism should figures differ significantly from predictions. Call in now to stay on top of continuing market reaction.

Euro

It seems that the euro is not master of its own destiny this week as it continues to play a largely reactionary role whilst events in the UK and USA continue to dominate. The euro weakened against sterling considerably yesterday morning and continued to decline throughout the day. The euro experienced more mixed fortunes in its performance against the dollar with reasonable movement seen in both directions, but little net movement, by the close of trading in London. Eurozone current account data, which details the difference in value between imported and exported goods may play some role in the euro's performance today, as might Spanish 10-year bond data, but it is likely that events elsewhere may continue to dominate the headlines and drive market movement. Call in now to keep pace with developments and to get a live rate. It seems that the euro is not master of its own destiny this week as it continues to play a largely reactionary role whilst events in the UK and USA continue to dominate. The euro weakened against sterling considerably yesterday morning and continued to decline throughout the day. The euro experienced more mixed fortunes in its performance against the dollar with reasonable movement seen in both directions, but little net movement, by the close of trading in London. Eurozone current account data, which details the difference in value between imported and exported goods may play some role in the euro's performance today, as might Spanish 10-year bond data, but it is likely that events elsewhere may continue to dominate the headlines and drive market movement. Call in now to keep pace with developments and to get a live rate.

US dollar

If investors were hoping for a clearer expression of intent from Fed Chairman Ben Bernanke, then they were certainly disappointed by his somewhat illusive report to Congress. Rather than laying out plans for future reductions in asset-buying, Bernanke remained accommodative and stated that the programme may be increased or tapered depending on economic conditions. Going forward this means that the US dollar is likely to be sensitive to changes in economic data in particular inflation data, as Bernanke stated that a slowing in asset-purchasing would be likely to happen if US inflation made a determined move towards the 2% target. Looking at the rates, the US dollar depreciated considerably against sterling in response to sterling strength, whilst a more mixed performance was registered against the euro. Bernanke will continue to testify to Congress today as US unemployment claims data is released as well as Philadelphia manufacturing data. Expect further volatility as markets react. Call in now to stay on top of developments and to receive a live rate.

Worldwide

Elsewhere, the Canadian dollar struggled yesterday after the Bank of Canada (with its new Governor at the helm) suggested that the economy remained sluggish and all but ruled out a potential interest hike in the near future. The Japanese yen struggled somewhat yesterday as confidence in the global markets grew. The Turkish lira was in the limelight once more as investors continue to speculate as to what action the central bank will take in the rate setting meeting next week. Overnight we saw the release of business confidence figures from Australia  and later on today wholesales sales figures may influence the relative strength of the Canadian dollar. Call Smart today for the latest news, and live quotes, for your currency.

A difficult day for sterling lies ahead | Smart Daily Currency Note

Sterling

Consumer Price Index data from the UK, which gives an indication as to the current level of inflation, came in marginally worse than expected yesterday. This impacted on sterling's performance as traders hedged their bets in the run up to the today's publication of the minutes from Governor Mark Carney's inaugural Monetary Policy Committee (MPC) meeting. Inflation has an important impact on performance as higher inflation should deter the MPC from further quantitative easing, which would devalue the currency, whilst lower inflation data would be seen as giving decision makers the go-ahead for increased asset-buying. The sterling dollar rate fluctuated throughout the day as both currencies reacted to negative stimuli, whilst sterling weakened steadily against the euro throughout the day. All eyes will be on the Bank of England report released this morning as we wait to see which way Carney and the other members voted on further quantitative easing. Call in now to track market reaction to the minutes and to get a live rate.

Euro

The euro performed surprisingly well yesterday despite German economic sentiment proving to be worse than forecast. As sterling and the US dollar falter ahead of today's events, the single currency made steady progress yesterday and improved its position against both currencies. Events in the UK and the US are likely to steal the limelight today and will likely play a much greater role on influencing the relative strength on the euro as opposed to the data emanating from Europe in the short term although we do have a key vote in Greece on further government cuts to public expenditure. The only significant data release will be the German 10-year bond auction held today. Call in now to see how the seventeen-nation currency reacts.

US dollar

The US dollar struggled yesterday as speculation grew that Chairman of the Federal Reserve Ben Bernanke will continue to deter hopes that we can expect a speedy scaling back of US bond-buying when he delivers his monetary policy report to Congress over the course of today and tomorrow. His words last week made traders hesitant to back the dollar ahead of the report. The US dollar fell consistently against the euro, whilst the dollar sterling rate experienced volatility, with sharp movements in both directions as both currencies struggled. US Consumer Price Index data, a key inflation indicator, failed to have a significant impact as predictions proved to be largely accurate for the month of June at 0.2%. Whilst the Chairman of the Federal Reserve’s report to Congress is expected to steal the headlines across the Atlantic, we also have another member of the Federal Open Market Committee speaking as well as a the release of the Beige book which will reveal the state of the local economies from all 12 Federal Reserve Banks. Call in now to see how the report is received. 

Worldwide

Elsewhere, the Australian dollar was one of the best performers yesterday following the release of the minutes from the latest Reserve Bank of Australia rate setting meeting which outlined the central banks sentiment that interest rates were at an appropriate level, henceforth, seemingly removing the possibility of another rate cut in the near term.  The Polish zloty also performed well yesterday following new government plans that will widen the budget deficit in order to boost the economy. The Canadian dollar remained fairly range bound as manufacturing sales figures came out as expected, however, you can expect the markets to become nervous ahead of the Bank of Canada’s rate setting meeting and press conference this afternoon. Call Smart today for the latest news, and live quotes, for your currency.

Sterling still feeling the heat | Smart Daily Currency Note

Sterling

Sterling experienced some movement yesterday, losing some ground against the US dollar during the morning, but largely making good those losses in the afternoon. There was also little overall movement against the euro as data released from Smart Currency partner Rightmove Plc showed that asking prices for UK housing had risen again to a record high. The most imposing event on the horizon for sterling is the publication of the minutes of the Bank of England's most recent policy meeting, which may give traders cause to react as everyone looks to get the measure of Mark Carney. Should it transpire that Carney voted in favour of further quantitative easing then we are likely to see a sharp decline for sterling. In the meantime, today sees the release of Consumer Price Index data, which is the most important indication of the current level of inflation in the UK. Higher than expected inflation may lend some support to sterling ahead of the release of the policy meeting minutes tomorrow, whilst lower figures would have an inverse effect. Call in now for a live rate from your trader and to keep pace with developments.

Euro

Yesterday saw little in the way of influential data emanating from the Eurozone and its performance was largely defined by events elsewhere. Little net movement was seen against sterling or the US dollar by the close of trading in London. Today we can look to German economic sentiment data to impact upon performance as traders looks for signs of optimism from investors and analysts in Europe's largest economy. Today also sees the release of Core Consumer Price Index and trade balance data from the Eurozone, but it is Germany's economic sentiment data that is likely to play the biggest role. Call in now to track its effect and to receive a live rate.

US dollar

The US dollar enjoyed a reasonably strong morning yesterday, making reasonable gains against sterling and euro as a number of key figures made optimistic predictions for the US retail sales data. However, earlier gains were quickly wiped out when the figures revealed less growth than expected. Whilst typical estimates put growth at 0.8%, the figures revealed growth to be slightly lower at 0.4%, underlining the fact that recovery has been less convincing in the second quarter for the US. Commentators expect the US economy to continue its recovery over the coming months, however figures such as yesterday's show that the recovery could be sporadic and any negative data is likely to lend credence to the hesitancy that Fed Chairman Bernanke expressed last week regarding the tapering back of the US bond-buying programme. Thus today's US Core CPI data, giving an indication as to the level of inflation in the world's largest economy, has the potential to cause further movement if figures differ from predictions. Call your trader now to keep pace with developments and to get a live quote.

Worldwide

Elsewhere, the Japanese yen struggled yesterday in part due to the disparity in future monetary policy in Japan versus the US. The Canadian dollar also struggled yesterday alongside falling commodity prices and ahead of the Bank of Canada rate setting meeting on Wednesday. Overnight we saw the Reserve Bank of Australia release the minutes from its latest monetary policy meeting and later on today we have manufacturing sales figures released from Canada. Call Smart today for the latest news, and live quotes, for your currency.

Sterling slips as the UK awaits the BOE meeting minutes | Smart Daily Currency Note

Sterling

Sterling slipped away a little on Friday, breaking through 1.51 and 1.16 against the US dollar and euro respectively. This week is a lot livelier on the news front than last with influential releases coming most days. Tomorrow sees annual CPI figures as well as other inflation data. On Wednesday markets get further insight into how the new Governor of the Bank of England will run his bank with the release of the minutes from the first meeting under his charge. On Thursday we have Retail sales figures, a key indication of consumer spending and growth in the country, markets will keep a keen eye on the release though the forecasts are not overly positive. Call your trader this week for the very latest news, and up to the second rates for sterling. 

Euro

The euro stayed broadly flat through Friday's trading in spite of somewhat disappointing manufacturing production figures. The major events this week are an influential German economic sentiment survey released tomorrow morning which is expected to show increased optimism. A bond auction on Thursday will show how much it costs the Spanish government to borrow money , but little else is scheduled to be released. Get in touch with Smart this week for an update on where the euro is trading right now.

US dollar

The US dollar got back into the groove on Friday as markets came to realise that, whether or not tapering of quantitative easing is to happen right away, the trend of monetary policy either side of the Atlantic appears to be moving in opposite directions. Those hoping for last week's excitement to have died down may well be disappointed with influential data being released most days. Today is retails figures, tomorrow inflation and Thursday sees Federal Reserve Chairman Bernanke speak again. Last time he spoke the US dollar dropped 2.5 cent - markets will certainly be nervous as he takes the stage again.  Call us today for a live rate on the US dollar.

Worldwide

Elsewhere the biggest loser on Friday was the Australian dollar, slipping 1.5% against its American counterpart. Overnight tonight eyes will look south again, with quarterly inflation figures from New Zealand, and the minutes from this month's Australian Monetary Policy Committee meeting. Later in the week, no change is forecast when the Bank of Canada announces its interest rate decision, and their new governor steps into Mark Carney's old shows and hosts a press conference. Call Smart today for the latest news, and live quotes, for your currency.

Difficult week for sterling, will it continue next week? | Smart Daily Currency Note

Sterling

Sterling was struggling as it began the week still looming in the shadow of new Governor Carney's comments. Things went from bad to worse though, as poor manufacturing and industrial production figures on Tuesday saw sterling's value fall by a further cent to 3 year lows - hitting 1.4814 against a strong US dollar. Sterling has then spluttered through the rest of the week against a wide range of currencies with little UK news being released. However it did gain nearly two-and-a-half cent as the US dollar took a dive overnight on Wednesday. Today is similarly quiet for news, instead traders will be looking to a busy week ahead with inflation figures as well as the minutes from the recent Bank of England meeting. Get in touch today for the latest news and up to the second rates for sterling.

Euro

A similarly steady week for the euro as markets became accustomed to the disparity in tone on monetary policy coming from central banks around the world. One of the members of the European Central Bank clarified that not only was there unanimity on the recent rate decision, but also that interest rates would absolutely not be raised for at least 12 months. Overnight on Wednesday euro finally broke through 1.30 mark against the US dollar, and pushed sterling back below the 1.16 level. Today sees very little news released so it's likely to be the same story again, but call your trader for an update.

US dollar

A tumultuous week for the US dollar - flying high through the early part of the week as markets speculated over the imminent end to ultra-loose monetary policy stateside. The Federal Reserve had made comments which lead traders to believe that the conditions were right to begin winding up quantitative easing programs. Markets looked to a speech from the Chairman of the Federal Reserve to add certainty to their speculation - Chairman Bernanke went against all expectations as he explained that much more needed to be seen in inflation and employment figures before the tapering of quantitative easing could begin. The shock news caused the US dollar to plummet 2.5 cent, seeming to settle a new levels yesterday. Today sees the release of influential inflation figures, which have taken on extra weight after recent comments so the excitement may well continue today. Get in touch with us today for the very latest.

Worldwide

Elsewhere the commodity backed currencies; the Australian, Canadian and New Zealand dollars enjoyed a strong start to the week, as risk appetite grew. Concern over poor Chinese figures saw early gains slip away midweek however. The Japanese yen has been weathering the storm well, making gradual gains against most major peers. The Danish, Swedish and Norwegian currencies similarly fared well in the first half of the week, but dropped off on the news from the US on ending stimulus programs. Call your trader today for the latest news and live rates on your currency.

US dollar weakens on Central Bank comments | Smart Daily Currency Note

Sterling

A fairly steady day for sterling yesterday as markets caught their breath after an eventful first half of the week. Sterling gradually won back a cent from overnight lows against the US dollar, as markets nervously took position ahead of the release of the release of Federal Open Market Committee (FOMC) meeting minutes last night. Following the release, we saw sterling appreciate by two and a half cent against a particular weak US dollar. This morning sees one of Mark Carney's colleagues at the Bank of England speak; to which markets will look to clarify last week's comments on interest rates. Call your trader today for the latest news and up to the second rates on sterling.

Euro

Steady as she goes for the euro yesterday, trading in a very tight range against sterling for the whole day - notably holding above 1.16. The European Central Bank today gives its monthly bulletin which is likely to reiterate recent comments saying that interest rates will remain at current levels or below for at least the next 12 months. Markets seem to have become accustomed to such comments, so we’re unlikely to see a dramatic move unless something considerably different is said. Get in touch with Smart today for live rates for the euro.

US dollar

The US dollar slipped a little through London trading yesterday as traders positioned themselves ahead of last night's FOMC meeting minutes, and the speech from Committee Chairman Bernanke. The US dollar weakened significantly following the comments from the Committee Chairman where he somewhat contradicted his previous statements on monetary policy and suggested that policy should remain accommodative due to low inflation and the fact that the labour market remains weak (in spite of last Fridays positive figures). The minutes from the FOMC meeting had less effect on the markets as the members of the FOMC appear to be split regarding when the potential tapering should begin. Today the excitement may well continue with the release of unemployment figures this afternoon. Call your trader for the very latest.

Worldwide

Elsewhere, no real change for the Japanese yen ahead of an anticipated statement on monetary policy this morning following on from last night's news from the US. Concern over decreasing trade with China saw the Australian dollar end its two-day winning streak ahead of employment figures released overnight. Its antipodean counterpart, the New Zealand dollar, similarly slipped in spite of recent comments from the Finance Minister that interest rates were certain to rise. Get in touch with us today for the latest news and live rates for your currency.

Sterling falls to 3 year lows, US dollar remains strong | Smart Daily Currency Note

Sterling

Sterling plummeted to 3 year lows against the US dollar yesterday after manufacturing production figures and industrial production figures came in well below most analysts' expectations. The fall came despite the fact that the UK was one of only two nations to see its Growth forecast upgraded by the IMF. Today, like the rest of the week, is quiet on the news front for the UK with traders looking to next week for the minutes from the first Monetary Policy Committee meeting under Mark Carney's governance. Any major movement in rate today will be in reaction to news from around the world - particularly from the US as the minutes from this month's Federal Open Market Committee (FOMC) are released this evening. Call your trader for the latest on sterling.

Euro

If sterling was weak, the euro was just as bad yesterday falling three quarters of a percent against the US dollar as a member of the European Central Bank clarified that not only was there unanimity on the recent rate decision, but also that interest rates would absolutely not be raised for at least 12 months. A quieter day again on the news front for the euro as well - French industrial production figures being the biggest release. Get in touch today for a live update on rates.

US dollar

A strong US dollar hit 3 year highs against sterling yesterday, also touching the highest point since March against the euro as everything crashed around it. This evening sees the release of this month's FOMC meeting minutes, which traders hope will clarify recent comments on the end of the super-loose monetary policy. The Chairman of the committee speaks after the release so we will no doubt see enhanced volatility ahead to the two events. The big question today is how high can the US dollar go, call your trader to find out.

Worldwide

Elsewhere it was a day for the commodity back currencies, as the Australian, New Zealand and Canadian dollars shone making gains across the board as risk appetite grew. The Japanese yen also had a strong day yesterday, holding its ground against a strong US dollar and making gains against other struggling major peers. Overnight we had Trade Balance figures from China, and an influential consumer sentiment survey from Australia ahead of employment figures tonight. Get in touch with us today for the latest news and rates for your currency.

Is sterling set for further weakness? | Smart Daily Currency Note

Sterling

After being pushed against the ropes overnight on Sunday - dropping to the lowest it has been since early March - sterling gained a little ground back against the dollar yesterday, pushing back above 1.49 again. The International Monetary Fund releases its World Economic Outlook today, with analysts saying it is likely that the UK will undo its recent downgrade and be forecast 1% growth in the next year. Key to that success will be the manufacturing sector, from which production figures are released this morning, with the expectation being that we will see growth return after a disappointing month. As long as the underlying data shows that recovery in the UK is gathering pace we can expect the pound to at least hold its own - if it goes the other way there is certainly room for even further weakness. Call in today for more news and up to the second rates for sterling.

Euro

Yesterday, the President of the European Central Bank President reiterated last week's comments that interest rates would be kept at least as low as they are for the foreseeable as the economic climate does not warrant a rise. Markets appeared to have become accustomed to the disparity between the noises coming from Britain and Europe, and those coming from the States, as there was no reaction to his words, instead we saw euro recover slightly. Talks get underway today between finance ministers where the focus will again be the next tranche of aid for Greece - while progress has been made in Portugal by proposing a Deputy Prime Minister, both regions still represent a threat to both Europe and the euro. Call now for an update on rates and news.

US dollar

After soaring to 4-month highs overnight, the US dollar had a fairly lacklustre day's trading; losing ground to most major peers as speculation grew that it had gained too much. Between now and Wednesday's release of minutes from this month's Federal Reserve meeting exchange rates are likely to be driven by risk sentiment. Yesterday saw positivity growing - good news for the more risky currencies, bad news for the US dollar - so there is potential for some weakening for the US dollar. Nonetheless, with the labour market appearing to grow, and Wednesday's announcement expected to further clarify plans to end the current ultra-loose monetary policy the outlook is largely positive for the US dollar. Get in touch today for the latest rates and news.

Worldwide

Yesterday, as today will be, was driven by risk and profit taking. As risk appetite grew, the Norwegian krone climbed by the most in 10 months - backed up by the feeling that its recent slide to almost three-year lows had been excessive. Similarly the Australian dollar, trading dangerously close to a three-year low against the US dollar, found a momentary lifeline thanks to a strong European stock market. The same could not be said for the Swedish krone, however, as manufacturing data came out worse than expected. The Canadian dollar rose from the lowest levels seen in almost two years as home construction data showed better-than-forecast figures. Overnight we saw the release of business confidence data from Australia and New Zealand, as well as inflation data from China. The rest of the day is a relatively quiet day on the data-front; with the only significant release being the Swiss monthly retail figures released first thing, risk will continue to be the key driver. Call your trader now for the latest on your currency pair.

Sterling suffering badly as temperatures soar | Smart Daily Currency Note

Sterling

A very tough end to the week for sterling, struggling as the US dollar stole the limelight. An ailing sterling dropped below 1.49 and 1.16 against the US dollar and euro respectively on Friday and after a fantastic weekend for British sport, we will have to see how the British currency fairs through the course of this week. The next five days is devoid of data from the UK save for manufacturing production figures released on Tuesday. Given the strength of the manufacturing figures released last week, we anticipate good news. Whether that will be enough to give sterling a helping hand to find some strength again remains to be seen. Get in touch for the latest news and up to the second rates for sterling.

Euro

The euro had a mixed end to last week; comments made by the European Central Bank President on Thursday after the interest rate decision lead to the euro hitting five week lows against the US dollar, but against an even weaker sterling the euro managed gains of 0.3% on Friday. Today, the President of the ECB speaks again, markets will be volatile as traders look for further evidence of forward guidance and openly interventionist policy. Today we also see the release of German trade balance figures, and on Wednesday we have industrial production data coming out of France and Italy. Call today for the latest news, and live rates for euro.

US dollar

The US dollar soared on Friday, gaining a cent as employment data beat expectations. Markets saw this as a sign that the times are indeed ripe for tapering down loose monetary policy, and drove dollar to below 1.49 against sterling. This week the excitement continues - while the first half of the week is quiet for data, expect volatility to remain as traders place their bets ahead of the release of the minutes from this month's FOMC meeting on Wednesday. Committee Chairman Bernanke speaks as well, and markets will hope that together they clear up speculation over the end of quantitative easing. More employment figures are released on Thursday, and inflation numbers on Friday so the question is; can the US dollar hold on - will it stay below 1.50? Call your trader now to find out.

Worldwide

Elsewhere, the Australian dollar and the New Zealand dollar weakened on Friday after both performing reasonably well earlier in the week. Looking ahead to this week, business confidence data coming from New Zealand on the Monday is likely to affect its currency's performance whilst the Australian Dollar will rise or fall on the back of Wednesday's consumer sentiment data and Friday's employment data. The Indian Rupee also fared poorly at the end of last week as did Chinese Renminbi. This was due to a number of factors including continuing US dollar strength and signs that growth in the Chinese economy is slowing down. Some commentators have suggested that we can expect further weakness in the Asian currencies as soon as the imminently-expected scaling back of US bond-buying occurs. Call in now to stay on top of the markets and for live rates from your trader.

New BoE Governor speaks, sterling plummets | Smart Daily Currency Note

Sterling

Yesterday's expression of the day was forward guidance - indication from an interventionist central bank as to what they are going to do with interest rates into the future. In his first act at Governor of the Bank of England, Mark Carney issued a surprise statement yesterday which expressed the Bank's concern over rising gilt yields, and said that any rise in interest rates which might erstwhile have been implied was not warranted. Markets read this as the MPC giving forward guidance that interest rates would remain at record lows for the foreseeable future, and sterling plummeted across the board, breaking below 1.16 and 1.51 against the euro and US dollar respectively. While we saw a little recovery against a similarly weak euro, sterling stayed at 5-week lows against the US dollar. Away from our new Governor, PMI figures released earlier in the week made it clear that the recovery is well underway showing growth across the board including particular strong figures from the services sector which saw sterling strengthen mid-week.  Today is much quieter on the news front, and sterling will trade in the wake of yesterday's announcement. With traders heading back to their desks in the US, we could well see more excitement, call Smart today to find out how things are looking.

Euro

After struggling through the week, with unemployment reaching new all-time highs and PMI figures disappointing, the euro took a further spill yesterday following the ECB meeting. Mario Draghi, President of the European Central Bank, joined the ranks of the interventionists when he said that, "ECB interest rates will remain at present or lower levels….for as long as necessary." The unprecedented move to assure markets of future plans pulled the rug from beneath the euro, which dropped a cent against the US dollar on the news. The Portuguese question continues to hang around, as politicians battle to hold a straining coalition together. Call your trader today for the latest news and up to the second rates.

US dollar

An up and down week for the US dollar; as traders continue to speculate if conditions are right to justify a reduction in asset purchasing facilities. The US dollar even weakened in spite of solid labour data which showed that the private sector put an extra 188’000 workers in employment, whilst the number of new people claiming for unemployment related benefits fell. The US dollar held its own on independence day, gaining against its major peers whilst sterling and the euro fell through the floor. Today, traders will be back at their desks, as a result, the markets will be far more liquid. Moreover, today see’s the release of the highly influential Non-Farm payroll data which will be closely watched given the labour data released earlier in the week and the Federal Banks comments that suggest that quantitative easing will only be tapered when the labour market has recovered to a greater extent. Get in touch now for live rates and news for the US dollar. 

Worldwide

Elsewhere, the big story this week has been the Australian dollar which has seen both ends of a 4 cent range in two days. Assertions from the Reserve Bank of Australia that the Australian dollar would probably depreciate further if the economy needed it led the currency to 34 month lows on Wednesday, only to gain nearly 4 cent against sterling through trading yesterday as investors considered the likelihood of a further interest rate cut. The Japanese yen has also been struggling this week, seeing brief moments of strength as markets get nervous and look to de-risk. Today sees employment figures for Canada release with no major change forecast, and with the Canadian dollar having seen no move either way in the last week it seems unlikely that the trend will change today. Call your trader for up to the second rates, and the latest news, for your currency pair.

Good services data boosts sterling | Smart Daily Currency Note

Sterling

The strongest day in many weeks for sterling, as Services PMI figures blew forecasts out of the water to post a sixth consecutive month of better-than-expected growth. The sector, which makes up 75% of UK GDP, is performing better than any other area and sterling climbed over a cent in the two hours around the release. Today is Mark Carney's first day in the public eye with the rate decision, and asset purchasing facility announced. We're unlikely to see any dramatic changes today – especially in light of the positive data emanating from the UK this week, what will be perhaps more insightful is the minutes from the meeting which are released in a fortnight. Nonetheless, markets will be nervous, and with trading volumes low nervousness is exaggerated into volatility so call your trader to find out where sterling is trading right now.

Euro

A dramatic day for the euro as two Portuguese ministers resigned from government, prompting concerns over stability in the region and over the depth of Europe's sovereign debt crisis. While the euro gained against a weak US dollar, nearly 1% was lost to both sterling and the Japanese yen. The political backdrop will continue to dominate affairs tomorrow, as well as the ECB’s rate decision and subsequent press conference this afternoon. Any change is unlikely, but traders will listen closely for any hints as to future monetary policy. With the holiday stateside, expect volatility to be far greater than normal around the conference. Call your trader today for the very latest news, and up to the second rates for the euro.

US dollar

The US dollar had a torrid day yesterday in spite of solid labour data which showed that the private sector put an extra 188’000 workers in employment, whilst the number of new people claiming for unemployment related benefits fell. Despite this, speculation grew as to whether progress in the labour market is sufficient to justify a reduction in asset purchasing facilities. The trade deficit, the difference between imports and exports, increased dramatically last month to show that imports into the US are near all-time highs. Today the US celebrates Independence Day and banks will be closed. With traders away from their desks, markets will be much less liquid than usual, and therefore much more volatile. Call in for to-the-second live rates.

Worldwide

Elsewhere, the Japanese yen enjoyed a strong day, benefitting from a risk averse market to push back below 100 against the US dollar. As Australia posted a higher than expected trade surplus, the Australian dollar briefly saw strength, only to promptly fall as the Reserve Bank of Australia Governor said that the currency would probably depreciate further if the economy needs it. The South African rand continued to struggle yesterday - falling for a third consecutive day as Chinese services data disappointed. The Polish zloty strengthened following comments for the central bank suggesting that after the rate cut in July, the easing cycle would be brought to an end. The Governor of the Bank of Japan has been speaking overnight and we also saw the release of building approvals figures from Australia; however, little else is scheduled to be released today. Get in touch today for the latest news, and live rates for your currency.

Sterling continues to lose ground against the dollar | Smart Daily Currency Note

Sterling

A strong construction sector did not make for a strong sterling yesterday. While Construction Purchase Manager Index (PMI) figures were the best they have been since May 2012, sterling still lost ground against the US dollar – pushing as low as 1.5150 against a bright US dollar in the early afternoon. Today the big news is the last of the PMI figures - Services which make up 75% of the UK's GDP and has shown consistent growth, month on month, since February. The consensus expect slightly less growth than last month, but positive news nonetheless. If the release beats expectations - given the importance for the UK's economy as a whole - expect sterling to strengthen. That being said, you can expect the market as a whole to remain nervous in anticipation of the Bank of England monetary policy meeting on Thursday where we will see Mark Carneys’ first rate decision as Governor. Not only that, but on the same day we will have the ECB’s decision on interest rates and decreased liquidity due to the US markets being shut in accordance to the 4th July Bank Holiday. Call your trader this morning for the very latest developments.

Euro

The euro was soft yesterday in a day that saw unemployment figures revised up to new all-time highs of 12.2%. While it held its own against a weak sterling during the course of the day only losing ground after close of business here, a dominant US dollar pushed it below 1.30, remaining below this key psychological level as we enter today. Services PMI figures are released in Europe today, with Spain and Italy releasing theirs just ahead of the general release for the Eurozone. In contrast to the UK, the outlook is not great - with the expectation being another month of contraction. Get in touch with your trader today for up to the second rates. 

US dollar

The US dollar enjoyed a strong day yesterday as factory orders exceeded expectations to post a second consecutive month of growth in manufacturing. With a bank holiday tomorrow for Independence day, expect volatility to be on the up over the next few days. Eyes will be on unemployment figures released today and Friday with the consensus expectations being cautiously optimistic. The labour market has long been linked with monetary policy in the US and with chatter about the end of monetary easing programs dominating affairs, good news would definitely boost the dollar. Call in now for the latest news and live rates for the US dollar. 

Worldwide

Elsewhere, the Japanese yen failed to snap a 5 day trend as the US dollar pushed up through the key 100 mark once again. Strong figures from Japan appear to be having the opposite effect to anywhere else in the world, as markets are treating good news as a sign that ultra-loose monetary policy is working and will not be brought to an end soon.  The Canadian dollar slipped to a 20 month low after growth dropped last month, trade balance figures released this afternoon will drive volatility. Overnight we saw Australian retail figures and trade balance data released, but little else is expected to be released throughout the day bar the aforementioned  trade balance figures from Canada. Call your trader now for up to the second rates for your currency pair.

Sterling has a difficult start to the week | Smart Daily Currency Note

Sterling

A good morning for sterling yesterday as 'economic rock star' Mark Carney took the reins at the Bank of England and Purchase Manager Index (PMI) figures exceeded expectations, showing growth in UK manufacturing for the second consecutive month. Market reaction to the release was fairly muted and sterling weakened through the afternoon to finish close to 1.1650 against the euro. Today sees further PMI data, this time from the Construction sector. After finally breaking into the positive last month, good news would certainly lend support to a struggling pound, but whether it will be enough to sterling remains to be seen. At the very least, expect volatility in the run up to these releases. Call your trader now to see how sterling is doing today.

Euro

The euro performed relatively well yesterday, gaining half a cent against the US dollar on the back of improved manufacturing PMI figures – in particular from struggling Spain and Italy. While they failed to break the near two year trend and still showed a contraction, the release was the best in 16 months and markets viewed it as perhaps the first small step towards recovery. Eurozone unemployment however was up on last month reaching record highs of 12.1% and it means today's data showing the change in Spanish unemployment will be watched with greater interest than normal.  With little data released today, markets will look ahead to Thursday's European Central Bank meeting as the key for this week. Get in touch with your trader now for the very latest on the euro.

US dollar

Following a strong performance last week, the US dollar showed some weakness yesterday falling against most of its major currency pairs including sterling and the euro. This was on the back of lower than expected construction spending and manufacturing PMI figures. Moreover, the employment section of the manufacturing PMI was shown to be contacting for the first time since 2009 (perhaps a precursor to poor non-farm employment change this Friday). This negativity indicates that perhaps the Federal Bank is further away from tightening monetary policy than the central bank had initially indicated. That being said, this weakness could only be short lived if we see further signs that the economy is on a sustainable path to recovery, or indeed if we hear more comments made about tapering the quantitative easing program from members of the Federal Open Market Committee. Call your trader now for live rates and news for the US dollar.

Worldwide

Elsewhere, the Japanese yen had a difficult day yesterday, falling against all major peers. The drop in value came in spite of a quarterly survey showing confidence in the manufacturing sector has improved for the first time in two years. The Japanese yen weakness would indicate a small risk rally as the commodity backed currencies all performed well at the same time. The Australian dollar was one of the stand out performers yesterday, recovering from a 34-month lows against the US dollar through Sunday night. The lows seen on Sunday night were a knock-on effect of worse-than-expected manufacturing data out of China, which did not do any favours for the already-struggling Aussie dollar. The New Zealand dollar also recovered well from the decline seen towards the end of last week. Overnight we saw the Reserve Bank of Australia (RBA) keep interest rates on hold which had the perverse effect of weakening the Australian dollar against sterling. Get in touch to find out if the Aussie dollar fairs throughout the rest of today, as well as all other live rates.

Difficult week for sterling as Carney starts at the BoE | Smart Daily Currency Note

Sterling

Sterling had a difficult week last week and continued to lose ground on Friday in spite of any significant data being released. This week we have a whole raft of UK data released, a Bank of England meeting and the arrival of the Mark Carney, quoted on the radio this morning as a financial "rock star", as the head of the Bank of England. Today we will see the release of Purchase Manager Index (PMI) figures from the manufacturing sector, tomorrow construction, and on Wednesday services figures. Forecast expectations are all positive, but we wait to see whether it's enough to reverse the trend of sterling's weakness. On Thursday we will see Mark Carney in action as Governor of the Bank of England for the first time, though no change is expected when he announces interest rates and asset purchasing facilities for the month. Of more interest to most traders will be the minutes from the first meeting under Carney, released 2 weeks later. July is starting with a bang so please call in today for the latest on sterling.

Euro

The euro held fairly steady at the end of last week, dropping off against the US dollar late in the day on Friday but mainly as a result of dollar strength rather than particular euro weakness. This week promises to be an interesting one, with manufacturing data coming out of Spain and Italy on Monday and Wednesday. Then on Thursday we have the European Central Bank meeting. Markets will be sensitive throughout, vulnerable to any surprise news or suggestion that the ECB could drop interest rates further over the coming months or undertake a programme of quantitative easing. Uncertainty is the name of the game at the moment so expect volatility to rise in anticipation of Thursday's meeting. Get in touch for the latest rates.

US dollar

The US dollar was the high flyer last week, gaining 0.8% against the euro as markets reacted to talk of tapering out monetary stimulus programs. The chatter is bound to continue into this week, with employment data released on Wednesday likely to deepen speculation as the labour market has long been linked with monetary policy stateside. Also released on Wednesday is non-manufacturing PMI figures, ahead of the key Non-Farm Payroll data on Friday. A lively week ahead, so call your trader to find out where we stand right now.

Worldwide

Elsewhere, the Japanese yen struggled on Friday as data released showed an improving economy, providing proof, albeit limited at this stage, that the ultra-loose monetary policy was having the desired affect, whilst the Australian dollar struggled following comments form a major bank regarding the state of the Chinese economy. .Last night we had the Chinese PMI figures kicking off the week that sees an interest rate decision from Australia late tonight ahead of retail figures which are expected to show fractional growth. The governor of the Bank of Japan speaks on Thursday, and we can expect volatility as he sets out his plans. A busy week also for the Canadian dollar with CPI figures as well as employment releases at the end of the week. Call Smart today for the very latest news and insight into your currency.

Sterling continues to fall | Smart Daily Currency Note

Sterling

On the whole a disappointing week for sterling - strong retail sales figures early in the week were encouraging signs for the British economy, giving sterling a short boost, but it has slipped away since. Key to driving this decline was two further members of the monetary policy committee calling for a looser monetary policy to stimulate growth in the country. Yesterday, the Office for national statistics revised their figures from last year to say that growth was substantially lower than previously thought, but, Britain did not see the two consecutive quarters of negative growth which would indicate a double dip recession. The focus for the next few days is undoubtedly going to be Mark Carney's entrance as new Governor of the Bank of England. While he has made it clear that there is no panacea for British economic woes, great expectations rest on his shoulders. Call your trader today for the latest news and rates for the UK and sterling. 

Euro

The euro struggled this week, following comments from the President of the European Central Bank President who said that the economic outlook still warrants an accommodative monetary policy stance. Notably, the euro bought less than 1.30 US dollars for the first time in a month on Wednesday. The European economic summit kicked off yesterday, with ministers from across the Eurozone attempting to come to a conclusion on a banking union. Positive unemployment figures from Germany lent some support to a struggling euro yesterday putting a halt to the downward trend, but the overall picture is still not strong for the 17-member state currency. Get in touch today for the latest on the euro. 

US dollar

The US dollar has enjoyed a very strong week – reaching 1.30 against the euro and 1.52 against sterling at its peak. The Chairman of the Federal Open Market Committee kick started the trend with the announcement last Friday that stimulus programs will be tapered out. Positive data from the States helped the US dollar to strengthen further still, indicating a healthy recovering economy. This trend of dollar strength continued in spite of GDP figures being revised down from initial expectations showing growth was only at 1.8%, a long way shy of the 2.4% that had initially been anticipated. Speak to your trader for up to the second rates, and the latest market news. 

Worldwide

Elsewhere, as Kevin Rudd returned for a second stint as Prime Minister of Australia following a party leadership ballot, the Australian dollar enjoyed the most positive week it has in some time. The Norwegian krone fell almost 2 percent against sterling as markets continued to react to last week's surprise cut in interest rates, with its Swedish counterpart being hit hard too though seeing some recovery through the week. The Indian rupee continued to free-fall, moving to new all-time lows. GDP data released from Canada this afternoon is expected to show the economy only grew by 0.1%; any variation away from this could spark a big reaction in the market. Call your trader for rates and news for your currency.