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Sterling hits six week high against dollar

Published:  24 October, 2011

Sterling strengthened to a six week high against the US dollar this morning as it tracked optimism that a deal would soon be reached to solve the European debt crisis.

Sterling strengthened to a six week high against the US dollar this morning as it tracked optimism that a deal would soon be reached to solve the European debt crisis. 

Currency rates - October 24

EURO/GBP - 1.1482

US$/GBP - 1.5942

CHF/GBP - 1.4107

CAN$/GBP - 1.6057
AUS$/GBP
- 1.5368
ZAR/GBP
- 12.7542
JPY/GBP
- 121.46
HKD/GBP
- 12.4090

NZD/GBP - 1.9842
SEK/GBP
- 10.4812

AED/GBP - 5.86

US$/EURO - 1.3860


The weekend's meetings of European officials has been met with cautious optimism by the markets. Prime Minister David Cameron had issued a stark warning that the crisis was having a "chilling effect" on growth.

 

Cracks appeared to be showing in Europe's recent show of solidarity as politicians bickered and yet again pushed back the deadline for presenting a solution to the euro zone crisis. The divisions seem to revolve around the level of the 'haircut' required by holders of Greek government bonds. Several members are pushing for a 50% cut against the 21% that was announced in July. Despite the announcement of a 'comprehensive solution' being delayed yet again, markets are quite optimistic and as a result the euro has strengthened this morning.

 

In the USA, the US dollar has come under pressure over the last few days as reports suggested that the Federal Reserve was preparing for a new round of Quantitative Easing and optimism over a potential debt deal for the euro zone built.

 

Elsewhere, oil prices fell on the news of Colonel Gadaffi's death on the expectation that oil production would be back to pre-conflict levels. This is unlikely to happen overnight, but supply should improve.

 


Supplied by Nick Ryder of Smart Currency Exchange, the currency partner to Harpers Wine and Spirit who have teamed up with Smart to provide readers with a free bespoke currency serviceGo to www.smartcurrencybusiness.com/winespirit for more information or call on 0207 898 0500.

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