{"id":643,"date":"2011-01-26T12:00:04","date_gmt":"2011-01-26T12:00:04","guid":{"rendered":"http:\/\/www.mycurrencytransfer.com\/blog\/?p=643"},"modified":"2011-01-26T12:00:07","modified_gmt":"2011-01-26T12:00:07","slug":"smart-currency-exchange-sterling-dropped-1-3-against-the-us-dollar-26012011","status":"publish","type":"post","link":"https:\/\/www.mycurrencytransfer.com\/blog\/smart-currency-exchange-sterling-dropped-1-3-against-the-us-dollar-26012011\/","title":{"rendered":"Smart Currency Exchange: Sterling dropped 1.3% against the US Dollar [26\/01\/2011]"},"content":{"rendered":"

Sterling plummeted yesterday \u2013 dropping by 1.3% against the US dollar and 1.1% against the euro \u2013 as 4th<\/sup> Quarter GDP showed that the UK economy contracted by 0.5% in the last 3 months of 2010. Markets were expecting December\u2019s poor weather to have an impact with analysts expecting a 0.5% gain, but the figure came as a great shock as there no longer seems to be any justification for last week\u2019s talk of higher interest rates before the summer. Sterling is likely to maintain subdued now for the coming months until the fundamental data catches up with inflation \u2013 especially after Mervyn King essentially ruled out any interest hikes for some time after insisting that inflation would retreat after peaking at 5% later this year. On the plus side, we have seen a lot of clients moving sums back into sterling taking advantage of sterling\u2019s demise.<\/p>\n

In the euro zone, the euro rapidly jumped to a 2 \u00bd month high against sterling as the shock UK GDP contraction came through. The euro hit \u20ac1.1562\/\u00a31 \u2013 the highest level since November the 8th<\/sup> \u2013 as markets scaled back their expectations of an interest rate rise in the\u00a0UK\u00a0that had buoyed the pound last week. Aside from the euro\u2019s movement against sterling, French consumer spending beat expectations, and the currency hardly moved against the US dollar all day as the majority of traders focused on sterling. Out today, we minimal data and Europe is likely to be overshadowed by\u00a0UK\u00a0andUS\u00a0interest rate minutes and policy announcements. Call in now for a live exchange rate.<\/p>\n

In the\u00a0USA, the US dollar had a similarly strong day against sterling \u2013 gaining by nearly 2 cents against the nose-diving\u00a0UK\u00a0currency. Traders took advantage as sterling posted 1% losses across the board. The US dollar also took a boost from better than expected consumer confidence figures that added to the ever improving picture of a blossoming\u00a0US\u00a0recovery. Out later today, we have the Federal Reserve\u2019s interest rate decision and policy statement. Markets are not expecting any changes, but subtle changes in the language used can be seen as a change in direction \u2013 either way it is a big day again, so call in now to ensure you don\u2019t lose out.<\/p>\n

Elsewhere, the Reserve Bank of\u00a0India\u00a0raised interest rates by 0.25% to clamp down on spiralling inflation and issued a warning that food prices would continue to rise without measures being taken to boost supplies and ease price pressures. Call in now for a live exchange rate.<\/p>\n

EURO\/GBP – <\/strong>1.1540 <\/strong><\/span>
US$\/GBP<\/span><\/strong> \u2013 1.5784
CHF\/GBP<\/strong> \u2013 1.4902
CAN$\/GBP<\/strong> – 1.5737
AUS$\/GBP<\/strong> \u2013 1.5822
ZAR\/GBP<\/strong> \u2013 11.1740
JPY\/GBP<\/strong> <\/span>\u2013\u00a0139.64
HKD\/GBP<\/strong> \u2013\u00a012.293
NZD\/GBP<\/strong> \u2013 2.0535
SEK\/GBP<\/strong> \u2013 10.2801
US$\/EURO<\/strong> – 1.3679<\/span><\/p>\n


<\/span><\/p>\n

To request a up-to-the minute quotation, fill out our quote form: http:\/\/www.mycurrencytransfer.com\/apply\/smart-currency-exchange<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Sterling plummeted yesterday \u2013 dropping by 1.3% against the US dollar and 1.1% against the euro \u2013 as 4th Quarter GDP showed that the UK economy contracted by 0.5% in the last 3 months of 2010. Markets were expecting December\u2019s poor weather to have an impact with analysts expecting a 0.5% gain, but the figure came as a great shock […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,21],"tags":[33],"_links":{"self":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/643"}],"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=643"}],"version-history":[{"count":1,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/643\/revisions"}],"predecessor-version":[{"id":644,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/643\/revisions\/644"}],"wp:attachment":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/media?parent=643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/categories?post=643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/tags?post=643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}