Sterling weakens against dollar

Published: 05 March, 2012

Sterling had a fairly stable day against the euro on Friday whilst weakening against the US dollar.

Currency rates - March 5

EURO/GBP - 1.1972

US$/GBP - 1.5798

CHF/GBP - 1.4436

CAN$/GBP - 1.5658

AUS$/GBP - 1.4748

ZAR/GBP - 11.9320

JPY/GBP - 128.31

HKD/GBP - 12.2672

NZD/GBP - 1.9108

SEK/GBP - 10.5718

AED/GBP - 5.8021

US$/EURO - 1.3188

INR/GBP - 77.65

This was even though the construction Purchasing Managers' Index (PMI) figures released were better than expected. The main focus this week will be on Thursday's Bank of England meeting and whether or not the Bank of England will further expand the asset purchase program with another round of Quantitative Easing beyond the £50 billion increase last month.

The euro had a poor day on Friday weakening against the majority of currencies as the markets were unimpressed by the developments seen at the EU Economic Summit and possible uncertainty about the Greek bailout package. This week the market will watch closely for further assurances surrounding Greece's problems and the European Central Banks press conference following their Thursday monthly meeting should provide further insight. With Greece's default day just over two weeks away, any news could move the markets significantly.

The US dollar had a strong day on Friday strengthening against the majority of currencies as risk aversion became the main driver in the market once more. This week see's the release of more unemployment data with recent positive releases leading the US economic recovery. The US recovery appears to be on track; but, as always volatility remains in the market.

Elsewhere, Canadian GDP released on Friday was better than expected; but, did not cause create much of a reaction from the market. The Official bank rates of New Zealand, Australia and Canada will be revealed this week paving the way for potential volatility if the interest rate levels are altered to a level the markets do not anticipate.

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 www.smartcurrencybusiness.com/winespirit for more information or call on 0207 898 0500.

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