Currency Rates

EURO/GBP - 1.141
US$/GBP - 1.592
CHF/GBP - 1.681
CAN$/GBP - 1.686
AUS$/GBP - 1.808

To request a up-to-the minute quotation, call 0808 163 0102 or fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx

Sterling continued a decline against major currencies yesterday as news of two opinion polls filtered through from the weekend that suggested that the UK election would lead to a hung parliament. This is cause for concern as many believe this would make it harder for the UK to deal with the huge deficit. In addition, many traders are wary of the Bank of England meeting on Thursday as despite some expectations that the emergency funding will come to an end, the risk that it will be extended would mean a sharp drop in sterling on the news. As a result, many are steering clear until after Thursday’s meeting. Mortgage approvals dropped unexpectedly in December which also caused sterling to drop, however the purchasing managers index showed manufacturing activity had improved slightly.

If you need foreign currency, the next few days is going to be very important in setting the ranges for the next month, so speak to a trader now and avoid losing out.

In the Euro zone, German retail sales have improved marginally in December, however this has had little effect as it is easily attributable to increased Christmas spending in the region. Whilst there was no new news on the Greek situation, the issue is still lurking under the surface and is likely to remain an issue for sometime.

In the USA, manufacturing activity increased to the highest level since 2004. Whilst this left markets in a buoyant mood and boosted US dollar to a yearly high against sterling, many economists believe that this spike in output is due to businesses restocking heavily depleted inventories rather than a specific jump in demand from consumers. Personal income and spending also rose in December (again attributable to seasonal factors – bonuses/ Christmas spending) and whilst this is encouraging, there needs to be a corresponding recovery in the labour market for the US to clearly demonstrate a route out of recovery. Employment data out on Friday is likely to move the market, so if you have US dollars and are looking to move them into sterling it might be worthwhile taking advantage of the current levels.

In Australia, the central bank unexpectedly kept rates on hold at 3.75% against expectations of a rise to 4%. This saw the Australian dollar lose about 1% against major currencies as officials look to avoid tightening monetary policy too far. So if you need Australian dollars, now is a good time to take advantage of improved rates.

Call 0808 163 0102 or +44 (0) 207 898 0541 from outside the UKor fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx