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Currency update June 16, inflation still "disappointingly high"

Published:  16 June, 2010

Currency analysis for June 16, 2010 from Smart Currency Exchange, Harpers Wine & Spirit's currency partners.

Currency Rates, June 16
EURO/GBP - 1.203
US$/GBP - 1.476
CHF/GBP - 1.671
CAN$/GBP - 1.519
AUS$/GBP - 1.712
ZAR/GBP - 11.254
JPY/GBP - 135.28
HKD/GBP - 11.506
NZD/GBP - 2.123
HUF/GBP - 335.69

Sterling had a mixed day yesterday, falling after CPI inflation data came in slightly under what had been expected. Markets were anticipating an annual rate of inflation of 3.5% and when the data showed 3.4%, investors sold the pound. This saw sterling fall to a low of $1.4684/£1 and €1.1998/£1.

However, later in the afternoon the pound staged a late surge as appetite for riskier assets returned. This saw a high of $1.4835/£1 and €1.21/£1. Despite falling, inflation is still "disappointingly high", according to analysts at Investec - and should see some interesting debates over monetary policy over the next few months.

While interest rates are unlikely to rise anytime soon, the next major move will be to officially end the quantitative easing programme which is (as it stands) on hold. Watch this space.

Out today, we have unemployment data on the change in the claimant count and governor of the Bank of England Mervyn King speaks in London this evening. Get in touch now and discuss your requirements with a currency specialist.

In the eurozone, the sheer scale of the poor sentiment felt towards the region became apparent today, as a measure of German economic sentiment showed a 20-point drop. The measure (out of 100) shows how investors feel about the economy, and with an expected rise, the scale of the drop demonstrated how shaky many feel about investing in the region. Other data showed that unemployment in the region showed no change.

In the USA, risk appetite and aversion yet again drove the US dollar movement yesterday. With import prices improving against expectations, there were signs that the US economy is on its way to recovery. Out later today there is data on building permits and also purchasing manager data. With the current levels of volatility against sterling, Smart is able to help you target a specific exchange rate by using Orders. Call in now to discuss how we can automatically buy when the rate hits your budgeted level.

Elsewhere, New Zealand consumer confidence rose to the highest level since September 2009 as unemployment dropped sharply at the beginning of 2010. The pound is very volatile against the NZ dollar.

* Smart Currency Exchange is a currency partner to Harpers Wine & Spirit. Harpers Wine & Spirit has teamed up with Smart to provide readers with a free bespoke currency service. If you are making or receiving international payments and are interested in talking to Smart please go to: to get a FREE no obligation quote or to download the Smart Wine and Spirit report. Alternatively call Smart on 0207 898 0500.

* To get currency udpates direct to your email then contact Richard Siddle on