Sterling strengthens against majority of currencies

Published: 14 March, 2012

Sterling had a strong day yesterday strengthening against the majority of currencies and rising more than one cent against the euro to around €1.20/£1 interbank.

Currency rates - March 14

EURO/GBP - 1.2014

US$/GBP - 1.5675

CHF/GBP - 1.4530

CAN$/GBP - 1.5542

AUS$/GBP - 1.4908

ZAR/GBP - 11.851

JPY/GBP - 130.53

HKD/GBP - 12.1701

NZD/GBP - 1.9182

SEK/GBP - 10.653

AED/GBP - 5.7568

US$/EURO - 1.3048

INR/GBP - 78.26

Figures released showed that the UK's trade balance deficit has narrowed in January. Today's main release is the change in the number of people claiming unemployment benefits which will give a strong indication of the state of the labour market in the country.

The euro had a poor day weakening against the majority of currencies despite fairly upbeat news out of the region. The German and euro-wide economic sentiment indices came in better than expected and the Greek bailout is expected to be formally approved today. Furthermore, Fitch (one of the three biggest credit rating agency) actually raised Greece's credit rating up four levels from restricted default to B-. Despite the more positive rhetoric from Europe, the euro weakened as investors took little notice and looked for reassurances that Spain would not be the new Greece.

The US dollar performed well yesterday as Wall Street hit the highest levels since June 2008 and figures depicting the best retail sales figures in five months were released. Comments from the Federal bank also took a more upbeat tone on the US economy suggesting that the strains in global markets "have eased". The central bank will leave rates unchanged at 0.25% until late 2014 and made no suggestion of implementing further quantitative easing. The US recovery appears to be on track; but, the market remains extremely volatile so call in now for the latest update and the latest news.

Elsewhere, Japan decided against expanding its asset-purchase facility; but, announced it will expand a loan scheme, by two trillion yen, to 5.5 trillion yen.

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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