EURO/GBP - 1.214
US$/GBP – 1.544
CHF/GBP – 1.587
CAN$/GBP - 1.634
AUS$/GBP – 1.738
NZD/GBP – 2.188
EURO/US$ - 1.271

Yesterday sterling fell to a one month low against the US dollar and ended four days of gains against the euro over fears of a double-dip recession. Martin Weale, a Bank of England Official stated in the Times, “The UK faced a significant risk of falling back into recession.” If risk aversion continues to weigh on the market, sterling could suffer further against the US dollar. Sterling will be dictated by risk trends today as there is limited economic data due for release. Call in now for a live exchange rate.

The euro still remains under pressure following Axel Weber’s comments last week. Further comments from the renowned economist Joseph Stiglitz also weighed on the euro as he fears that the European economy could drift back into a downturn due to efforts to reduce their budget deficits. Today sees the release of German IFO expectations data which is one of the country’s key business sentiment surveys. Get in touch now to speak to our traders so you can plan ahead accordingly.

The US dollar has been well supported due to renewed risk aversion as financial markets continue to cope with the possibility that the economic recovery is running out of steam. There was further evidence yesterday that the US housing market is stalling as existing home sales were much weaker than expected at 3.83 million in July against a market expectation of 4.65 million. This was the worst figure for 15 years. Data on new home sales and durable goods orders are due for release today. Ensure you are taking advantage of the best prices by speaking to a trader today.

Global equities and commodities also fell sharply as investors sought the safety of government debt. This sent UK, German and US bond yields to a record lows. Further evidence of investors exiting risky assets can be seen in the Japanese yen’s rise against the US dollar which is now trading at a 15-year high.

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