6th October 2010
Good morning. Sterling rose to a 2 month high versus the USD yesterday as the dollar fell to its lowest levels in more than eight months versus a basket of currencies. However the pound continued to lag vs the Euro as surprisingly good UK services sector data failed to kill off concerns that the economy may require further monetary easing. Rates this morning at 08:30am are as follows:
- GBP/EUR 1.1475
- GBP/USD 1.5910
- GBP/AUD 1.6308
- GBP/NZD 2.1180
- GBP/CAD 1.6110
- GBP/CHF 1.5365
- GBP/ZAR 10.900
- GBP/HKD 12.338
- GBP/JPY 132.14
- EUR/USD 1.3863
Sterling and US Dollar weak
The pound and the US Dollar are weak at the moment, due to speculation both the Bank of England and the FED will have to stimulate the economy again through Quantitative Easing. The weaker USD means it’s cheaper to purchase and rates are now the best for a few months.
Due to the weaker pound and a stronger Euro however, the current downward trend is continuing. The euro is stronger across the board, finding persistent demand from Asian sovereign accounts, while analysts said a more hawkish interest rate outlook than in the UK and the U.S. was underpinning the single currency against the pound and the dollar.
“The ECB will be hiking rates well before the Fed or the BoE. We still favour a stronger euro,” said Gavin Friend, currency strategist at nabCapital.
The pound has been losing ground steadily against the euro on speculation the Bank of England could ease policy further.
So, with a strong Euro and the pound likely to remain under pressure due to QE and uncertain economic recovery, we expect GBP/EUR to remain poor. If you need to purchase Euros, then contact us today to discuss how we can help you achieve the best rates, and protect against losing out due to adverse rate movements.
If you are looking for the best exchange rates, click the link below to send us an enquiry, and have a free consultation on what’s happening in the currency markets.