11/07/2013

US dollar weakens on Central Bank comments | Smart Daily Currency Note

GBP/EUR - 1.1556
GBP/USD - 1.5082
EUR/GBP - 0.8646
EUR/USD - 1.3043
GBP/AED - 5.5393
GBP/AUD - 1.6305
GBP/CAD - 1.5639
GBP/CHF - 1.4338
GBP/CNY - 9.2507
GBP/HKD - 11.6942
GBP/HUF - 338.92
GBP/INR - 90.227
GBP/JPY - 149.5
GBP/NZD - 1.9026
GBP/RUB - 49.2366
GBP/SEK - 10.0281
GBP/THB - 46.846
GBP/ZAR - 14.9626


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A fairly steady day for sterling yesterday as markets caught their breath after an eventful first half of the week. Sterling gradually won back a cent from overnight lows against the US dollar, as markets nervously took position ahead of the release of the release of Federal Open Market Committee (FOMC) meeting minutes last night. Following the release, we saw sterling appreciate by two and a half cent against a particular weak US dollar. This morning sees one of Mark Carney's colleagues at the Bank of England speak; to which markets will look to clarify last week's comments on interest rates. Call your trader today for the latest news and up to the second rates on sterling.

Steady as she goes for the euro yesterday, trading in a very tight range against sterling for the whole day - notably holding above 1.16. The European Central Bank today gives its monthly bulletin which is likely to reiterate recent comments saying that interest rates will remain at current levels or below for at least the next 12 months. Markets seem to have become accustomed to such comments, so we’re unlikely to see a dramatic move unless something considerably different is said. Get in touch with Smart today for live rates for the euro.

The US dollar slipped a little through London trading yesterday as traders positioned themselves ahead of last night's FOMC meeting minutes, and the speech from Committee Chairman Bernanke. The US dollar weakened significantly following the comments from the Committee Chairman where he somewhat contradicted his previous statements on monetary policy and suggested that policy should remain accommodative due to low inflation and the fact that the labour market remains weak (in spite of last Fridays positive figures). The minutes from the FOMC meeting had less effect on the markets as the members of the FOMC appear to be split regarding when the potential tapering should begin. Today the excitement may well continue with the release of unemployment figures this afternoon. Call your trader for the very latest.

Elsewhere, no real change for the Japanese yen ahead of an anticipated statement on monetary policy this morning following on from last night's news from the US. Concern over decreasing trade with China saw the Australian dollar end its two-day winning streak ahead of employment figures released overnight. Its antipodean counterpart, the New Zealand dollar, similarly slipped in spite of recent comments from the Finance Minister that interest rates were certain to rise. Get in touch with us today for the latest news and live rates for your currency.

Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote on: 0845 638 0571 (or +44 (0)207 898 0500 from outside the UK) or fill out our quote form

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