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Sterling trades in tight range as risk appetite drives market

Published:  08 March, 2012

Sterling traded in a fairly tight range against both the US dollar and the euro yesterday as markets fears subsided and risk appetite began to drive the market.

Currency rates - March 8

EURO/GBP - 1.1962

US$/GBP - 1.5761

CHF/GBP - 1.4434

CAN$/GBP - 1.5699

AUS$/GBP - 1.4855

ZAR/GBP - 11.9387

JPY/GBP - 128.227

HKD/GBP - 12.2384

NZD/GBP - 1.9201

SEK/GBP - 10.6750

AED/GBP - 5.7874

US$/EURO - 1.3168

INR/GBP - 79.09

Today the Bank of England will reveal if it has decided to further expand the asset purchase program with another round of Quantitative Easing beyond the £50 billion increase last month. The rate decision and the statement that follows have caused significant movements in sterling's relative strength in the past.



The euro stayed fairly stable yesterday as confidence surrounding the Greek debt-swap grew. 58% of Greek bond holders have now agreed to the swap with many major banks participating. Four Greek pension funds have refused to join and the other bond holders have until Thursday night to decide and unless the participation rate reaches 75% the expectation is for a disorderly default.



The US dollar lost its momentum from Tuesday staying fairly flat against most currencies and weakening against some as risk appetite increased following the news suggesting the Greek debt-swap should be secured today. Non-farm employment change figures were better than expected and unemployment claims data released today will look to further boost the positive sentiment of US economic recovery.



Elsewhere, data released in Australia showed that whilst GDP rose, it fell short of the markets estimates leading to the Australian dollar coming under pressure in the early hours before recovering with the markets increased risk appetite. Much worse than expected building permits data released in Canada quashed the positivity from yesterday's figures; but, had little bearing on the Canadian dollar's strength.


Supplied by Nick Ryder of Smart Currency Exchange, the currency partner to Harpers Wine and Spirit who have teamed up with Smart to provide readers with a free bespoke currency service. Go to for more information or call on 0207 898 0500.