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Sterling weakens against majority of currencies

Published:  29 March, 2012

Sterling had a poor day yesterday weakening off against the majority of currencies as the fourth quarter GDP figures for 2011 were unexpectedly revised down to -0.3%; furthermore, annual GDP figures were also revised down to 0.5%.

Currency rates - March 29
EURO/GBP - 1.1935

US$/GBP - 1.5916

CHF/GBP - 1.4392

CAN$/GBP - 1.5886

AUS$/GBP - 1.5334

ZAR/GBP - 12.2110

JPY/GBP - 131.35

HKD/GBP - 12.3596

NZD/GBP - 1.9475

SEK/GBP - 10.5910

AED/GBP - 5.8458

US$/EURO - 1.3332

INR/GBP - 81.38

Data released yesterday showed that the UK's disposable income has now dropped to -1.2% meaning consumers have to tighten their belts even more to maintain their living. This negativity drove sterling to a two week low against the euro. House price data and figures depicting the net lending to individuals is released today which will go some way to indicate the state of the UK's economy.

The euro had a mixed day yesterday as rumours suggested that the Eurozone countries might try to increases the bailout fund sooner rather than expected which would create greater certainty in the region. German unemployment figures is the main data on the agenda today, the markets will looks for signs that the labour market could potentially lead the Eurozone recovery as it has in the US.

The US dollar had a strong day yesterday, strengthening against the majority of currencies despite both the core and headline durable goods orders rising by less than markets had predicted. Today, more labour data is released in the form of unemployment claims and the final quarters GDP for 2011 will also be revealed. Both have the potential to cause some volatility in the market.

Elsewhere, fears surrounding China's economic growth weighed on the Australian dollar as it weakened against the majority of currencies. Business confidence data was released from New Zealand late last night and the main other release is the raw materials inflation data from Canada.