Sterling fell against the US dollar on Friday afternoon hitting a 2 month low as concerns over the UK’s exposure to Euro zone debt left investors fearful that the crisis could spread beyond Greece and Ireland. There was poor house price data on Friday that showed house prices fell by 0.8% in October – the biggest fall since February 2009. There is some positive news expected today with the Office of Budget Responsibility expected to revise the growth predictions for this year upwards and mortgage approvals expected to come in at around the average monthly level of 48,000. Call in now for a live exchange rate as there is significant volatility.
In the euro zone, the biggest news of the weekend was the announcement of a finalised bail out plan for Ireland totalling €85bn. The loan package is aimed at bringing the country’s borrowing costs on the bond markets down to more acceptable and manageable levels, and also to add much needed liquidity to the banking system. European officials have been keen to play down the links between Ireland and Portugal – seen by many as the next domino at risk. So far this morning, the euro rose slightly against the US dollar but soon dropped again to 2 month lows. Speak to one of the team now about getting the best price.
In the USA, the US dollar has been the benefactor of risk aversion in the last few days, with investors buying the US currency as it represents one of the safest ways to hold investments at times of uncertainty. Following the Irish rescue package, investors have felt increasingly uncertain and as such have looked to the safe haven asset. It is a quiet day for data, so call in now for a live exchange rate.
Elsewhere, investors have been cutting their Australian dollar holdings as China has made moves to tighten up monetary policy to combat the soaring inflation in the country. In addition, all eyes have been on the Korean peninsula with the Korean won losing several per cent last week over concerns that conflict was breaking out again. Get in touch now for a live exchange rate.
EURO/GBP – 1.1770
US$/GBP – 1.5617
CHF/GBP – 1.5626
CAN$/GBP – 1.5905
AUS$/GBP – 1.6132
ZAR/GBP – 11.1105
JPY/GBP – 131.11
HKD/GBP – 12.118
NZD/GBP – 2.0768
SEK/GBP – 10.8409
US$/EURO – 1.3264
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