Sterling has "poor" day against euro and dollar

Published: 07 March, 2012

Sterling had a poor day yesterday, losing over one and a half cents against the US dollar and falling against the euro as risk aversion drove the market.

Sterling had a poor day yesterday, losing over one and a half cents against the US dollar and falling against the euro as risk aversion drove the market.

Currency rates - March 7

EURO/GBP - 1.1968

US$/GBP - 1.5728

CHF/GBP - 1.4434

CAN$/GBP - 1.5722

AUS$/GBP - 1.4891

ZAR/GBP - 11.997

JPY/GBP - 127.04

HKD/GBP - 12.2118

NZD/GBP - 1.9232

SEK/GBP - 10.6739

AED/GBP - 5.7756

US$/EURO - 1.3136

INR/GBP - 79.42

Weaker Halifax house pricing data also hampered sterling's strength showing that property prices fell by 0.5%. The expectation was for an increase and this clearly demonstrates the uncertainty that exists in the housing market. The chancellor noted that he sees 'encouraging developments' in the state of the economy; however, the markets remain unconvinced.

The euro was weak against the safe haven currencies with the deadline for the Greek bondholder's debt swap fast approaching and the markets taking little confidence from suggestions that the deal would be completed shortly. Rumours were also circulating suggesting that Portugal's may eventually need a second bail out which caused further negative sentiment to the region. The markets will look for some clarity regarding the debt swap today.

The US dollar strengthened against the majority of currencies except the Japanese Yen as fears of a global economic slowdown and a Greek default influenced the market. Barack Obama stated his belief that the recent economic news has been positive; however, the markets will look to the non-farm employment change data released tomorrow to support this sentiment.

Elsewhere, the Japanese yen had another strong day strengthening against the majority of currencies due to its safe haven status. The release of strong Purchasing Managers' Index (PMI) data out of Canada saw the Canadian dollar strengthen against sterling in the afternoon. Call in now for the latest update and the latest news.

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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