Smart Daily Currency Note - 11th November 2009

Smart Currency Exchange - Daily Currency Rates for Business Users

Daily Inter Bank Currency Exchange Rates 9th November 2009

Currency Rate EURO 1.120 US$ 1.677 CHF 1.693 CAN$ 1.784 AUS$ 1.810 ZAR 12.486 JPY 151.06 HKD 12.999 Comments:  Sterling held its own last week as the week revolved around the meetings of the various central banks. In the UK the Bank of England kept interest rates on hold which was as expected. But the BoE did increase their programme of quantitative easing by £25bn to £200bn. From past experience this should have led to sterling weakening across the board. But two factors seemed to benefit sterling. The first one was the increase was less than some had forecast which the market took as a positive. The second factor was the BoE emphasised that the funds would be made available at a slower rate than those previously. This again was viewed as a positive. So has sterling turned the corner? That may be wishful thinking but at least the last two weeks have on balance been positive which is a start. This week we have the BoE's inflation report which will give the data behind their decision on quantitative easing and will allow the market to try and look into the future. The US$ sits at US$1.677/£1 inter bank. Last weeks meeting of the Federal Reserve highlighted for the 100th time that interest rates will be kept at the current low levels for quite a while. But at the same time they detailed the factors which necessitated such a course of action; spare production capacity, low inflation/deflation and low inflation expectations. All fairly obvious but good to see detailed. Unemployment figures released on Friday showed that US unemployment has doubled since December 2007 and is now over 10%. I think this highlights why US interest rates are going to be on hold for quite a while. On Friday we have the September trade balance figures released and some consumer confidence figures for November. The euro sits at €1.120/£1 inter bank. The European Central Bank kept the euro interest rates on hold last week which was expected. Their sentiments were very similar to the other central banks in that it was going to be a long road to recovery. The ECB also stated that they would keep there emergency liquidity provisions going but were very conscious that they had to be curtailed on a timely basis once the recovery was gathering pace. The strength of the euro is still causing problems for exports and this is something the ECB is particularly worried about as they see it as potentially choking any recovery before it really gets going. This week trade and industrial production data for September is released. We also have released the gross domestic product figures for September. The data should show that euro land is emerging from the recession and beginning to grow. The commodity back currencies had a mixed week last week. The Australian $ continues to benefit from increasing interest rates although the rate of increase is likely to be slow and steady rather than rapid. The New Zealand dollar fell back on fears that recovery was not going as well as hoped.   Note:  All rates are mid market inter bank and indicative at the point of publication.  To get live pricing contact Carl on 0845 638 0571 (+44 0207 898 0541) or email him on: Carl@SmartCurrencyBusiness.com

phone: 0845 638 0541 (from overseas +44 0207 898 0541) email: Carl@SmartCurrencyBusiness.com web: http://www.SmartCurrencyBusiness.com

Smart Currency Exchange | 1 Lyric Square | Hammersmith | London | W6 0NB | UK © 2005-2009 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are valid at a moment in time. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we recommend that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum pain! Smart Currency Exchange Ltd is authorised by the Financial Services Authority under the Payment Services Regulations 2009 (FRN 504509) for the provision of payment services.

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