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Currency update, September 7: sterling has difficult seven days

Published:  07 September, 2010

Sterling has had a difficult seven days with the release of poor UK economic data raising significant concerns on the UK's recovery.


Currency Rates
EURO/GBP - 1.206
US$/GBP - 1.538
CHF/GBP - 1.558
CAN$/GBP - 1.601
AUS$/GBP - 1.689
ZAR/GBP - 11.195
JPY/GBP - 129.03
HKD/GBP - 11.950
NZD/GBP - 2.133
EURO/US$ - 1.275
HUF/GBP - 345.05


On Thursday we have the Bank of England meeting and sterling is being undermined by the worry that the BoE may revisit their programme of quantitative easing given the poor data. This has been on hold since the last quarter of last year and in the past when utilized has led to sterling losing value.


Sterling continues to hover around the €1.20 level which is a key level of support. Economic data following the summer season is in short supply. The German economy is still the key driver for the euro zone and so long as this keeps on moving forward then we will see support for the euro.


As highlighted yesterday economic data out of the US has been mixed and a bit like the UK the markets are wondering what this means with regard to quantitative easing. The Federal Reserve meets later this week and just like here in the UK the markets are nervous as to what may happen. So this week although starting quietly on the data front could have a highly volatile ending.


Commodity backed currencies continue to gain on the back of increase investor confidence. The Far East seems to be moving forward while the western world falters.


Smart Currency Exchange is a currency partner to Harpers Wine and Spirit. Harpers Wine and Spirit has teamed up with Smart to provide readers with a free bespoke currency service.


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