Smart Currency Exchange: Sterling hits 4-month high [11/01/2011]

Smart Currency Exchange: Sterling hits 4-month high [11/01/2011]

Sterling hit a 4-month high against the euro yesterday as the single currency was dogged by concerns over the debt problems in the euro zone.  Sterling was also helped against the euro as many (including PM David Cameron) believe inflation is too high in the UK and as such the Bank of England will need to raise interest rates sooner than expected, but the Bank is expected to keep rates on hold this Thursday in the first meeting of the year.  The pound suffered against the US dollar after figures showed that house prices fell by 1.6% in the year to December – the biggest drop since November 2009. Out today there is consumer confidence, so call in now for a live exchange rate.

In the euro zone, the euro suffered after a senior source was quoted saying that euro zone countries were piling the pressure on Portugal to seek financial aid from the European Bank and the International Monetary Fund in order to stem the risk of ‘contagion’ spreading to other countries in the region. This led to the single currency falling to a 4 month low against both the euro and US dollar but it did stage a slight rally towards the end of the day as ‘short sellers’ (i.e. those selling the currency and buying back at a lower price for profit) closed out positions at profit. Despite this recovery, the euro is set to remain under significant pressure so speak to a trader to get the best price – especially if you are moving euros into sterling anytime soon.

In the USA, the US dollar hit a 4 month high of $1.29/€1 and regained ground lost against sterling on Friday. As ‘earnings season’ kicked off on Wall Street (where companies announce corporate earnings to the stock market), the US markets had strong expectations and as such shook off any worries related to Europe. It is quite a quiet day for data so call in for a live price to avoid any unexpected movements.

Elsewhere, the Chilean peso and Brazilian real suffered in risk related selling following the crisis in the euro zone. ‘LatAm’ currencies, as they are known, correlate closely with risk appetite and a poor performance from the euro sees the South American currencies suffer.

EURO/GBP – 1.2015

US$/GBP – 1.5552

CHF/GBP – 1.5092

CAN$/GBP – 1.5425

AUS$/GBP – 1.5788

ZAR/GBP – 10.6130

JPY/GBP – 129.25

HKD/GBP – 12.099

NZD/GBP – 2.0474

SEK/GBP – 10.677

US$/EURO – 1.2940

To request a up-to-the minute quotation, fill out our quote form: http://www.mycurrencytransfer.com/apply/Smart Currency Exchange

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