Smart Daily Currency Note - 16th November 2009

Smart Currency Exchange - Daily Currency Rates for Business Users

Daily Inter Bank Currency Exchange Rates 16th November 2009

Currency Rate EURO 1.117 US$ 1.673 CHF 1.686 CAN$ 1.751 AUS$ 1.791 ZAR 12.364 JPY 149.95 HKD 12.972 Comments:  Sterling had a mixed week last week, holding its own against the €, gaining against the US$ and losing ground against the commodity backed currencies. Mid week the Bank of England released its quarterly inflation report which showed that inflation was unlikely to reach the target rate of 2% for a number of years. The report did show that the BoE was expecting an improved growth in the UK economy over the coming years than previously forecast. The overall reaction of the market was sterling negative especially when the Governor of the BoE decided to comment. He highlighted that the major concern remained the spare capacity that exits in industry and the labour markets. But by the end of the week sterling had managed to reclaim lost ground against the € and the US$. This week we have the release of retail and inflation data for October. Retail sales are expected to show a modest increase and inflation an increase and continue to be over the 1% level on the back of increased food and energy prices. The US$ sits at US$1.673/£1 inter bank. No significant economic data released in the US last week and the US$ seemed to track the equity markets and therefore risk appetite/aversion. At one stage the US$ hit a 15 month low against a basket of leading currencies. The US weekly jobless claims showed that the US economy was slowly moving forward as previous growth figures had shown but the Fed continues to shout from the hilltops that it is a slow road to recovery. This week we have the retails sales and inflation figures for October. Retail sales are expected to show an improvement over last month. It is the comparison with last years which shows a year on year fall close to 6%. Inflation figures are expected to show the same trend, an increase over last month but deflation over 12 months. The euro sits at €1.117/£1 inter bank. Last week we had the release of growth figures for the euro zone. Overall there was growth which was the first quarter's growth after 5 quarters of decline. Germany, France and Italy showed growth whereas Spain continues to decline. And I would bet we see the same trend in the quarter we are in as we all know how Spain became very dependent on the building industry which has ground to a halt. The European Central Bank still views the strong euro as a worry and as such will be keeping interest rates low for a while. This week we have the release of the inflation figures for October for the euro zone which is expected to show a slight fall over the last year. With increased risk appetite the commodity back currencies had a good week last week. Australian unemployment figures released surprised on the positive side which supported the Australian $ and the belief that we will see further increases in Australian interest rates in the New Year. The Chinese economy seems to be growing which will be supportive of these currencies as China is the main market for commodities at the moment.   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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