Sterling climbed against the euro yesterday as concerns over sovereign debt in the euro zone continued to hamper the single currency. As a result, sterling broke the \u20ac1.19\/ \u00a31 barrier for the first time in around 2 months. The risk aversion that saw investors pull out of the single currency and into sterling also saw sterling lose ground against the US dollar, with sterling dropping to $1.5480\/\u00a31 for a time before levelling out at the $1.5530\/\u00a31 mark. The sterling\/ US dollar rate is a real indicator of investors\u2019 feelings towards risk and with Commerzbank forecasting a return to $1.52\/\u00a31 today in the short term, it is a far cry from the giddy heights of $1.6290\/\u00a31 that we saw on Bonfire night \u2013 just a few weeks ago. This kind of volatility demonstrates why you should be in touch to discuss forward contracts to protect against this kind of movement.<\/p>\n
In the Euro zone, the euro plummeted to 10 week lows against the US dollar yesterday as the Irish bail out failed to dampen speculation over the need for further rescue packages in the region. The single currency dropped below $1.30\/ \u20ac1 for the first time since September as worries over \u2018contagion\u2019 hammered the euro zone debt markets. Spain, Italy and Belgium\u2019s cost of borrowing hit record highs yesterday, as many feared these countries would not be able to face their debt obligations. One analyst felt that this risk of default could spread to countries outside the euro zone as there are \u201cno safe sovereign borrowers\u201d. In terms of data, there is German retail sales figures released today, but these are likely to be insignificant in the grand scheme of things. Call in now for a live exchange rate.<\/p>\n
In the USA, the US dollar continued to attract demand from risk adverse investors yesterday. The currency has been the \u2018safe haven\u2019 for those investors looking to avoid losses, with most buying US government bonds \u2013 traditionally one of the safest (but consequentially lowest yielding) investments globally. US data was positive yesterday, with consumer confidence and purchasing data both beating expectations. Out today, there is a wide range of data being released so call in now for a live price.<\/p>\n
Elsewhere, the Japanese Ministry of Finance confirmed that it did not intervene in the currency markets between October 28th and November 26th. The Japanese government stepped in on September the 15th and sold $25bn worth of yen to bring the Japanese yen off 15 year highs against the US dollar and help make Japanese exports more competitive.<\/p>\n
EURO\/GBP – <\/strong>1.1951
\nUS$\/GBP<\/strong> \u2013 1.5623
\nCHF\/GBP<\/strong> \u2013 1.5714
\nCAN$\/GBP<\/strong> – 1.5961
\nAUS$\/GBP<\/strong> \u2013 1.6213
\nZAR\/GBP<\/strong> \u2013 11.0146
\nJPY\/GBP<\/strong> \u2013\u00a0130.875
\nHKD\/GBP<\/strong> \u2013\u00a012.1331
\nNZD\/GBP<\/strong> \u2013 2.0936
\nSEK\/GBP<\/strong> \u2013 10.9294
\nUS$\/EURO<\/strong> – 1.3066<\/p>\n