Sterling regained ground against the euro yesterday

January 25, 2012  •  Business & Finance  •  0 Comments

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STERLING regained ground against the euro yesterday after hitting a four-week low against the currency, however the pound struggled to make many gains as investors became concerned over further economic weakness in the UK.

In a speech last night, Bank of England governor Mervyn King hinted at a further round of Quantitative Easing in the coming month’s meeting. Today sees the minutes from last month’s meeting which are expected to elaborate on this position. In addition, we have the first estimate GDP figures for the 4th Quarter of 2011, which are expected to show a contraction of the eUK economy in the last three months of the year. Call in now for a live exchange rate.

In the euro zone, the euro remained quite resilient yesterday helped by better PMI figures on economic activity. In addition, markets shook off the news that the Greek ‘PSI’ deal would be delayed further after euro zone Finance Ministers rejected the current proposal after insisting that interest payments on the re-negotiated bonds should now be below 4%. The deadline for a new agreement has now been pushed back to February 13. There is little in the calendar from Europe today, but events are likely to be driven by activity in the UK/ USA so ensure you don’t lose out and call in today.

In the USA, risk appetite has jumped overnight in Asian markets on the news late last night that iPhone maker Apple had reported a 73% rise in quarterly revenue, which saw shares in the company surge by 9% in after hours trading on the NASDAQ. Later on this evening, the focus shifts to the Federal Reserve and the FOMC interest rate meeting. This will be the first time that individual interest rate forecasts will be published. Call in now for a live price.

Elsewhere, the Royal Bank of New Zealand is likely to keep interest rates on hold at today’s meeting. With Europe causing issues and inflation declining sharply, many expect the RBNZ to keep rates on hold. Call in now for a live rate.

EURO/GBP – 1.1948
US$/GBP – 1.5570
CHF/GBP – 1.4461
CAN$/GBP – 1.5752
AUS$/GBP – 1.4809
ZAR/GBP – 12.3520
JPY/GBP – 121.41
HKD/GBP – 12.0852
NZD/GBP – 1.9195
SEK/GBP – 10.5490
AED/GBP – 5.7290
US$/EURO – 1.3026
INR/GBP – 77.94

To request an up-to-the minute quotation or for more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: www.smartcurrencyexchange.com

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