8th December 2010
Good morning. The pound rose yesterday against the USD and EUR following better than expected Manufacturing data. We also had a good GDP estimate that has reduced the chance of further Quantitative Easing in the UK, and this has helped the pound gain. Rates at 08:30am this morning are as follows:
- GBP/EUR 1.1888
- GBP/USD 1.5714
- GBP/AUD 1.6021
- GBP/NZD 2.0893
- GBP/CAD 1.5889
- GBP/CHF 1.5519
- GBP/DKK 8.8640
- GBP/HUF 331.86
- GBP/ZAR 10.954
- GBP/JPY 131.80
Sterling boosted by Manufacturing data
The wider measure of industrial output – which includes mining and oil production – fell 0.2% in October. However, analysts said much of this fall was down to seasonal factors, and the overall picture was encouraging.
The result was a much stronger pound, with exchange rates rising. Those that placed Stop Loss orders yesterday as suggested have now been able to take advantage of the rising market and raise their Stop limits. Get in touch today to discuss how these types of contract work.
Irish Budget Passes vote
The toughest budget in the Republic of Ireland’s history has narrowly passed its first parliamentary vote.The 6bn euros (£5bn; $8bn) of cuts in the 2011 budget are part of a four-year 15bn-euro austerity plan designed to bring the country’s deficit under control.
If the rest of the budget is cleared by parliament, it will trigger the first tranche of bail-out funds from the EU and IMF. It will also avert the likelihood of a snap election, and the news has calmed the markets.
Sterling vs Euro summary
Now there seems to be a way forward for Ireland, investors are calmer about the Euro. Given that the US may well conduct further Quantitative Easing and face higher inflation, investors are looking for other places to put there funds. Right now Sterling and the Euro are more attractive options.
So both the Euro and Pound have risen in value, but the Euros gains have been limited due to fears other EU countries such as Portugal Spain & Italy may also face debt problems. This meant that the pound rose more than the Euro, and that’s why were now close to 10 week highs for Sterling to Euro exchange rates.
As we said in yesterdays post, it’s impossible to predict if the rate will keep rising. In these situations we have different contract types to allow you to take advantage of continued gains in the rate while protecting against adverse exchange rate movements.
To discuss the contract types we offer and find out more about the commercial exchange rates we offer, contact us today. It’s free to register an account with us, doesn’t obligate you in any way; it simply enables us to provide you with quotes and means you can call us for information on markets and exchange rates.