EURO/GBP - 1.186
US$/GBP – 1.447
CHF/GBP – 1.683
CAN$/GBP - 1.516
AUS$/GBP – 1.737

Sterling had a good week last week gaining ground on greater risk appetite in the markets against the US$ and the . Following the bank holiday here in the UK on Monday we have opened up with sterling slightly up on the euro and slightly down on the US$. This week we have UK purchasing managers indices for both manufacturing and services. Both are expected to be similar to last months figures which if met would show the economy continuing to expand. We also have some housing data for mortgages and house prices. It will be interesting to see how the influence if any of the election in early May has on these figures. But we continue to be in very volatile times with exchange rates moving very quickly. That is why it is so important to get in touch now if you have an upcoming requirement.

The euro zone is still trying to find a way out from its problems with government debt. Various governments are now working out how to cut their costs and as such the markets are getting concerned about how this will affect euro zone growth. Today we have unemployment figures for the euro zone which are expected to be at steady at 10% for the whole euro zone. So the euro zone has huge problems and as such we need to be aware that movements in exchange rates will be continue to be erratic and hence the sooner you get in touch the better.

The US$ has been the main beneficiary over the last few months given the problems in the euro zone and the UK and its safe haven status. But having said that the US has just revised its growth figures for the first quarter from 3.2% to 3.0% whereas the markets were expecting it to be increased to 3.4% which makes it clear that nowhere is going to have a smooth run out of recession. Later this week we have unemployment figures and purchasing manager’s indices for both manufacturing and services. So a busy week for economic data and as such expect volatility in the exchange rates.

Last week the commodity backed currencies such as the Australian and New Zealand dollars regained some ground on the back of increased risk appetite. It will be interesting to see what happens in the short to medium term as we may be seeing a pull back in Chinese demand which would have a negative affect on these currencies.

Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx