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Sterling has steady week

Sterling has had a steady week, marginally gaining against the euro and losing against the US dollar.

Currency rates  - March 16

EURO/GBP - 1.2014

US$/GBP - 1.5716

CHF/GBP - 1.4509

CAN$/GBP - 1.5610

AUS$/GBP - 1.4929

ZAR/GBP - 11.881

JPY/GBP - 131.30

HKD/GBP - 12.2010

NZD/GBP - 1.9165

SEK/GBP - 10.672

AED/GBP - 5.7710

US$/EURO - 1.3074

INR/GBP - 78.86

Economic data was mixed with unemployment data released this week slightly worse than expected and the trade deficit figures slightly better than expected. One of the government debt credit agencies put the UK's AAA debt rating on review which seemed to have limited effect. Next week we have the budget and it will be very interesting to see what the Chancellor's expectations are for the UK economy.

The euro lost a bit of ground this week. Slightly strange given that euro zone economic data was slightly more positive than expected and that the second Greek bailout has finally, it appears, been sorted out. Concerns about euro zone countries are still around and their size significantly dwarfs what was required in Greece.

The US dollar gained a little bit of ground during the week but is trading in a fairly narrow range against sterling. Economic data out of the US continues to be positive which reduces the likelihood of further quantitative easing in the eyes of market which is positive for the US dollar.

Elsewhere the commodity backed currencies lost a bit of ground with the Australian dollar pushing over Aus$1.50/£1. It did pull back to Aus$1.49 level towards the end of the week but the worry is that the Chinese economy will reduce the demand for commodities as they rebalance their economy.

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.