6th August 2010
Good morning. Sterling has fallen against the US Dollar ahead of today's non-farm payrolls data. The pound is little changed against the Euro following the expected interest rate holds yesterday in the EU and UK. We'll look at this in detail in a moment along with the important data releases that may affect exchange rates. First at 08:30am rates are as follows:
- GBP/EUR 1.2050
- GBP/USD 1.5903
- GBP/AUD 1.7327
- GBP/NZD 2.1814
- GBP/CAD 1.6141
- GBP/CHF 1.6670
- GBP/ZAR 11.491
- GBP/JPY 136.84
- GBP/NOK 9.4985
- EUR/USD 1.3195
UK Interest Rates
The BoE left rates at the record low of 0.5% yesterday as expected. The news did little to alter exchange rates, and focus has already shifted to the central bank's quarterly projections on the economy and inflation, due next Wednesday, to gain insight into policymakers' thinking. We will also watch the minutes of yesterdays decision due in a little under 2 weeks to see how they voted. These events will likely have an impact on Sterling's value.
EU Interest Rates
There was little reaction to the European Central Bank's decision to keep policy steady, as expected. Rates were left on hold at 1%, and there were no surprise comments in the speech afterwards that effected the value of the Euro. GBP/EUR rates have remained very flat this week as there have been no real surprises in economic data.
The Pound vs Euro rate did drop slightly yesterday after the euro was buoyed by data showing German industrial orders rose 3.2 percent in June, surpassing expectations thanks to strong foreign demand. Also boosting the Euro was the successful Spanish debt auction and positive comments from the International Monetary Fund about Greece's progress in reducing its deficit. The stronger Euro pushed rates down very slightly.
An extremely busy day for fundamental data today. In the UK, we have a GDP estimate, Industrial and Manufacturing production figures, and inflation data.
In the EU we have inflation and production figures. Later in the day we have unemployment and non farm payrolls for the US. We expect significant volatility during trading today that could move rates either way.
Keep track of where rates are moving throughout the day on our Twitter page, which is regularly updated with the rates and any important news.
When you need to buy your currency, contact us to compare our rates with your bank to see just how much you could save. Enjoy your weekend.
Labels: Economic Data, Exchange Rates, Interest Rates