Good morning and welcome to today\u2019s foreign exchange daily market commentary on Wednesday the 16th of November.<\/p>\n
Is the European Union staring at contagion? Well, things are certainly not looking good for the eurozone. Yields on Italy\u2019s 10-year duration bonds breached the 7 per cent barrier again on Tuesday; a key level that many believe is unsustainable for the country while borrowing cost for Spain rose ahead of its debt auction of a new 10-year bond on Thursday.<\/p>\n
The spread on French, Belgian and Austrian 10-year bond yields over German Bunds widened to their highest since Euro came into existence in 1999. Don\u2019t be surprised if France suffers a downgrade in near future. Dutch equivalent maturity yield-spread also hit its highest since early 2009.<\/p>\n
Meanwhile a ZEW survey showed German investor and analyst sentiments sank for the ninth straight month in November. Political and economic uncertainty in Italy and Greece was cited the reason for the overall gloom.<\/p>\n
UK inflation data was something to cheer about after October recorded a 0.2% drop over the previous month. However, Governor Mervyn King will be worried still since it remains way above the targeted annualized rate of 2%. Unemployment data is expected today and not much improvement over the previous month is expected.<\/p>\n
GBP\/EURO \u2013 1.1684
\nGBP\/US$ \u2013 1.5786
\nGBP\/CHF \u2013 1.4496
\nGBP\/CAN$ – 1.6178
\nGBP\/AUS$ \u2013 1.5614
\nGBP\/ZAR \u2013 12.8831
\nGBP\/JPY \u2013 121.50
\nGBP\/HKD \u2013 12.2917
\nGBP\/NZD \u2013 2.0516
\nGBP\/SEK \u2013 10.6732<\/p>\n
If your currency pairing is not listed above and you want to make a currency transfer, check out our comparison tables at www.mycurrencytransfer.com for the best foreign exchange rates<\/a>.<\/p>\n EURO<\/strong>: The common currency continues its downward journey against major global currencies amid widespread apprehension of a looming EZ recession. To make matters worse, the GDP in euro area grew by a negligible 0.2 per cent in Q3, although it was along expectations. Fortunately US data looked better than expected as retail sales in October rose by 0.5 per cent against the projected 0.25 per cent. The EUR\/USD pair opened lower at 1.3520 today morning and is expected to be range bound today. The GBP\/EUR remained fairly steady yesterday and hovered around the 1.1700 level.<\/p>\n USD<\/strong>: The Cable saw some volatility as investor risk sentiments were more influenced by EU developments. The GBP\/USD pair fell below the 1.5800 level in overnight trading and opened at 1.5790 in the morning trade. Have a great day.<\/p>\n Going on holiday? Why not buy either a euro currency card<\/a> or dollar currency card<\/a> at our sister travel money site MyTravelMoney.co.uk. A prepaid currency card can be an excellent way to manage your budget overseas and avoid many charges associated with travelling abroad.<\/p>\n","protected":false},"excerpt":{"rendered":" Good morning and welcome to today\u2019s foreign exchange daily market commentary on Wednesday the 16th of November. Is the European Union staring at contagion? Well, things are certainly not looking good for the eurozone. Yields on Italy\u2019s 10-year duration bonds breached the 7 per cent barrier again on Tuesday; a key level that many believe is unsustainable for the country […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[110],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1280"}],"collection":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/comments?post=1280"}],"version-history":[{"count":1,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1280\/revisions"}],"predecessor-version":[{"id":1281,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1280\/revisions\/1281"}],"wp:attachment":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/media?parent=1280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/categories?post=1280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/tags?post=1280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nElsewhere, the commodity backed currencies gained against the Sterling yesterday despite heighted risk aversion. This possibly explains the Sterling\u2019s strong link to the EZ while the antipodean currencies remain tied to the Chinese growth story.<\/p>\n