Sterling rose to a 5 month high against the euro yesterday as concerns over Irish debt dented the single currency and investors began to question the effect of debt in the Euro zone region. With data fairly thin on the ground yesterday in the UK, many are looking ahead to Wednesday\u2019s Bank of England inflation report and Mervyn King\u2019s subsequent press conference. The report will contain the Bank\u2019s updated forecasts for growth and inflation, and the press conference will give an insight into how seriously the Bank of England considered further Quantitative Easing last week \u2013 especially in the light of the US Federal Reserve\u2019s decision to pump an additional $600bn into the economy. Mervyn King has the ability to be rather downbeat when speaking publicly, so call in now to ensure you don\u2019t get caught out. Out today there is industrial and manufacturing figures alongside the UK trade balance \u2013 all of which have the potential to see market movements.<\/p>\n
In the Euro zone, the euro slipped yesterday following concerns over the Irish budget. The opposition party in Ireland said that they would not back next month\u2019s budget and a report in a Sunday newspaper cited a \u201csenior market player\u201d who was critical of the proposed plan to cut Ireland\u2019s deficit. As a result, financial markets revisited concerns over the \u2018peripheral\u2019 (i.e. Spain, Greece, Portugal) European debt and this saw the euro fall against sterling and the US dollar. Out later today, there is German inflation data and French public finance figures. Call in now and speak to one of the team to get the best price.<\/p>\n
In the USA, after several weeks of selling pressure ahead of the Federal Reserve\u2019s announcement to pump $600bn into the economy, the US dollar finally had some respite. As the focus turned back to European debt, the US dollar recovered to hit a high of $1.3888\/\u20ac1 against the weaker single currency and took back some ground against sterling as investors covered extreme US dollar short positions, which meant buying back US dollars. Out later today, it is a quiet day for data, but speak to one of the team now to ensure you take advantage of better prices.<\/p>\n
Elsewhere, China and Germany (both major exporting nations) have heavily criticised the Federal Reserve\u2019s \u201cQE2\u201d (or second round of Quantitative Easing) as it has already seen investors start pumping cheap US dollars into emerging markets in the expectation of higher return on investment. The problem with this is that it destabilises the global economy and leaves exporting nations with prohibitively high exchange rates \u2013 exactly why China is reluctant to allow the Chinese yuan exchange rate to float freely against the US dollar. Speak to one of the team now about what this means to your business.<\/p>\n
EURO\/GBP – 1.161
\nUS$\/GBP \u2013 1.608
\nCHF\/GBP \u2013 1.551
\nCAN$\/GBP – 1.618
\nAUS$\/GBP \u2013 1.594
\nZAR\/GBP \u2013 11.060
\nJPY\/GBP \u2013 130.00
\nHKD\/GBP \u2013 12.470
\nNZD\/GBP \u2013 2.053
\nUS$\/EURO – 1.385<\/p>\n","protected":false},"excerpt":{"rendered":"
Sterling rose to a 5 month high against the euro yesterday as concerns over Irish debt dented the single currency and investors began to question the effect of debt in the Euro zone region. With data fairly thin on the ground yesterday in the UK, many are looking ahead to Wednesday\u2019s Bank of England inflation report and Mervyn King\u2019s subsequent […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/97"}],"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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/comments?post=97"}],"version-history":[{"count":2,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/97\/revisions"}],"predecessor-version":[{"id":113,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/97\/revisions\/113"}],"wp:attachment":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/media?parent=97"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/categories?post=97"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/tags?post=97"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}