EURO\/GBP – 1.1920
US$\/GBP \u2013 1.6136
CHF\/GBP \u2013 1.5265
CAN$\/GBP – 1.5916
AUS$\/GBP \u2013 1.6136
ZAR\/GBP \u2013 11.6464
JPY\/GBP \u2013 134.25
HKD\/GBP \u2013 12.57
NZD\/GBP \u2013 2.1554
SEK\/GBP \u2013 10.5193
US$\/EURO – 1.3532<\/p>\n
Sterling\u00a0hit a high of $1.6260\/\u00a31 yesterday, but struggled to push much higher as investors took profit from sterling\u2019s recent run against the US dollar. Positive comments from a key Bank of England policymaker helped support sterling, as Martin Weale (who voted for an interest rate hike last month) stated that a small interest rate rise now would reduce the need for a large rise at a later date. Whilst the prospect of an interest rate hike helped support sterling, markets are waiting for Wednesday\u2019s Bank of England minutes to see if any other of the 9 strong committee joined Andrew Sentance and Martin Weale in voting for an interest rate hike this month. It is worth noting that a lot of the current interest rate hike speculation is already \u2018priced in\u2019 (i.e. reflected in the exchange rate already) and as a result, there could be no real movement. We are at the highest level against the US dollar for nearly a year, so it is a good time to take advantage.<\/span><\/p>\n <\/span><\/p>\n In the euro zone, the euro slipped yesterday following risk aversion relating to the escalating tensions in the Middle East and\u00a0North Africa. In times of geo-political turmoil, investors generally look to safe haven currencies. As a result, the Swiss franc has seen some strength against the euro today. However, the euro did see some support from strong fundamental data, with German business confidence hitting a record high and purchasing managers\u2019 data beating expectations. Call in now for a live exchange rate.<\/span><\/p>\n <\/span><\/p>\n In the\u00a0USA, with the markets closed for a bank holiday, there was no real data impacting the price. With the increase in violence in the Middle East and\u00a0Libya\u00a0in particular, oil prices have jumped to a 2 \u00bd yr high \u2013 which you would expect to see correlated with US dollar strength. However, what we have seen recently is US dollar\u00a0weakness<\/em> with the current situation as investors worry over the future impact on US foreign policy of massive upheaval in the region. Interesting times, so make sure you are on top of any upcoming payments.<\/span><\/p>\n <\/span><\/p>\n Elsewhere, the Australian dollar has remained resilient despite moves by\u00a0China\u00a0over the weekend to rein in inflation and reduce monetary supply.\u00a0China\u2019s moves have been greeted with relief by many rather than panic, and with Australian economic fortunes closely linked to\u00a0China\u2019s economic demand, a move to address an expanding bubble is a sensible move by the Chinese.<\/span><\/p>\n