EURO/GBP - 1.230
US$/GBP – 1.503
CHF/GBP – 1.626
CAN$/GBP - 1.578
AUS$/GBP – 1.761

Sterling hit a 19 month high against the euro yesterday as investors deserted the euro ahead of bank repayments to the European Central Bank. The pound hit 1.2380 as a key deadline looms on Thursday for the repayment of loans made to banks in the Euro zone. Sterling was also supported after the launch of a 30 year gilt (UK government bond) was received well by financial markets. Lending data released yesterday showed that net lending to individuals had increased to £1.5bn but final mortgage approvals fell slightly. Today, we have seen house price data show prices rise by a mediocre 0.1% month on month against an expectation of 0.3%. Despite the wave of positivity that has followed the budget, there are still several issues that need addressing in the UK, and these figures are showing that there is potential for another housing slump. Call in now to avoid missing out on the best rates.

In the Euro zone, sentiment towards the region has taken another punishment as concerns over liquidity in the Euro zone have left investors concerned. On Thursday, a 442bn lending facility from the European Central Bank expires. This has prompted overnight lending rates to increase and widening gaps between government bond spreads. We will have to see what happens over the next few days. Out today, we have seen German unemployment data for June which has shown a rise of 21,000 – worse than expected. Later on today, there is inflation data for the Euro zone. Get in touch now to ensure you do not miss out.

In the USA, with a fairly quiet week so far on the economic calendar, the big news was that consumer confidence fell on the month. A lot of data in the US has suggested that the US recovery is stalling somewhat so a decline in confidence did not come as too much of a surprise. Out later today, there is ADP Non-Farm employment change – the precursor to the main Non-Farm Payroll data and a figure that gives a good indicator of Friday’s figure. Call in now for a live exchange rate and to ensure that you don’t miss out on the best price.

Elsewhere, Australian private sector credit and loans to buy houses increased yet again and beat economists’ expectations. However, new home sales fell to a 2 year low – showing a conflicting assessment of the property market. It might be due to the heavy programme of interest rate hikes over the last few months. Call in now for a price – especially on the more volatile currencies such as Aus dollar and NZ dollar.



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