Sterling falls against Euro and US Dollar

Good Morning. Sterling fell to an 8.5 month low against the US dollar at the end of last week as concerns over euro zone sovereign debt problems boosted the appeal of the greenback as a safe-haven currency. This morning at 08:30am rates are as follows:

  • GBP/EUR 1.1394
  • GBP/USD 1.5609
  • GBP/CHF 1.6722
  • GBP/AUD 1.7947
  • GBP/CAD 1.6646
  • GBP/NZD 2.2579
  • GBP/NOK 9.3026
  • GBP/DKK 8.4828
  • EUR/USD 1.3687

Worries about debt problems in the euro zone have extended beyond Greece to Portugal and Spain, hitting riskier assets, with sterling falling in tandem with the euro against the dollar.

Concern over Britain’s public finances, and political uncertainty ahead of a general election due by June also weighed on sterling sentiment.

“The euro zone debt story is the main focus. The euro is looking weak and sterling is following,” said Audrey Childe-Freeman, currency strategist at Brown Brothers Harriman.

The pound saw only very brief gains from the Bank of England’s expected decision on Thursday to pause quantitative easing after 11 months of asset-buying totalling 200 billion pounds, leaving the door open to more if needed.

Tomorrow, we’ll have a full forecast for the US Dollar and Euro, plus a breakdown of the weeks economic data.

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