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Sterling hits seven week high against the euro


US Dollar:

Treasury prices gained and the U.S. dollar remained higher on Thursday after the Labour Department said job¬less claims unexpectedly rose by 18,000 to 460,000 in the latest week. Yields on 10-year Treasury notes which move inversely to prices, fell 1 basis point to 3.85%. Despite racking up gains against the euro, the U.S. dollar continues to lose ground against currencies exposed to China's resurgent economy. While the dollar has gained 12% against the euro since late November, across much of Asia the dollar has taken a hit. This year, it is down roughly 4% against the Indian rupee, the Indonesian rupiah and the Korean won, and 3% against the Thai baht. It has fallen 6% versus the Malaysian ringgit, the biggest slide in Asia, thanks to Malaysia's interest-rate hike in March, which increased demand for the Asian currency from foreign investors.
DATA: No major data to be released today    


Sterling hit a seven-week high against the euro on Thursday as the euro suffered from ongoing concerns about Greece's deficit problems, while the pound was supported by strong readings of UK output and housing data. But despite its gains against the euro, the pound was unable to gain significantly against the dollar and stayed on the back foot overall as uncertainty surrounding the outcome of a looming UK election kept the currency un¬der pressure. Sterling brushed off the Bank of England's decision to hold interest rates at a record low 0.5 per¬cent while refraining from adding to its 200 billion pound asset-buying programme. The euro came under broad selling pressure in early European trade due to growing doubts about Greece's ability to manage its debt prob¬lems, and analysts said this was helping to boost sterling. "The very poor backdrop for the euro due to the Greek situation, that's why we're seeing euro/sterling edge lower, rather than anything to do with sterling," said Paul Robson, strategist at RBS in London.  
DATA: No major data to be released today


The euro is slightly higher after sliding for several days on new worries about Greece's debt woes. The shared European currency edged up to $1.3365 in early European trading Friday from $1.3353 in New York late Thurs¬day. Greece's borrowing costs have spiked to a record high this week, raising doubts about the effectiveness of a financial rescue plan. However, European Central Bank president Jean-Claude Trichet insisted Thursday that default was "not an issue" for the country. Euro zone deputy finance ministers and central bankers are likely to discuss the terms on which emergency loans could be given to Greece, should Athens ask for them, a euro zone source said. Euro zone leaders pledged last month to extend a financial safety net to debt-ridden Greece if the country was unable to finance itself on the market, but did not set detailed terms of such aid, like the rate of interest or duration of such loans.
DATA: No major data to be released today


• Gold prices Thursday were slipping from their $1,150 resistance area on renewed Greek debt fears and a stronger U.S. dollar.


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GBP/USD 1.5300
GBP/EUR 1.1425
EUR/USD 1.3390
GBP/JPY 143.26
GBP/AUD 1.6470
GBP/NZD 2.1572
GBP/ZAR 11.0574
GBP/CHF 1.6378
GBP/CAD 1.5312
GBP/SGD 2.1327
GBP/THB 49.19
GBP/HKD 11.8751 red-down; blue-up (snap shot)

These rates are for indication purposes only.


For more information or to get the latest spot rates contact:

John Paul Georgiou
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