Skip to content

US dollar rises to one week high against the Euro

US Dollar:
he U.S dollar rose overnight amid signs of increasing tensions within Europe over an aid plan for the debt-strapped Greek government. The Dollar also received support from some discussion in the market about the possibility that the Federal Reserve will raise the discount rate sooner than previously slated. The U.S currency was near a one-week high against the EUR as a report showed that manufacturing in the Philadelphia region expanded in March at the fastest pace this year. The improved U.S. economic outlook and very modest policy tightening outlook continue to highlight the U.S.'s relative economic growth, providing support for the U.S currency. The currency was also bolstered as economists said the Federal Reserve may raise the discount rate, charged on direct loans to banks, before the start of the next two-day meeting on April 27. The greenback also got a boost versus the EUR Thursday after a spokeswoman for the International Monetary Fund said Greece hadn't approached the IMF for financing, prompting some USD buying.
DATA: No major data released today.

Sterling rose to a three-week high against the euro on Thursday after UK public sector net borrowing came in lower than expected and on talk of European interest in buying British firms. Public sector net borrowing was the highest on record for a February at 12.361 billion pounds, but below economists' forecast of 14.75 bil¬lion. The figures indicated the budget deficit may come in below the government's bleak forecasts, giving room for the ruling Labour Party to boost spending ahead of a tight election expected within weeks.
DATA: MPC Member Tucker Speaks    


The EUR stabilized but remained under pressure on renewed concern about Greece after Athens said it may not be able to achieve its promised deficit cuts if its borrowing costs remain so high. The European cur-rency was set for its biggest weekly loss since the start of February on concern Greece will fail to secure finan-cial assistance from the European Union. The EUR declined to $1.3620 from $1.3735 and slipped 0.9% versus the Japanese currency to 122.95 yen. The European single currency also hovered around a 17-month low against the Swiss franc after Swiss National Bank officials said on Thursday that Swiss firms and consumers should prepare for rising borrowing costs as interest rates cannot stay low forever. The EUR edged down 0.1% against the Swiss franc to 1.4390 after falling as far as 1.4355 francs Thursday,, its weakest level since October 2008. The EUR remains on a downward trend as the market has been redirected to worries over Greece. Un¬certainties over the prospects for a Greek debt bailout have not been wiped away, analysts said. As for today, without major economic events the market will likely be driven mostly by supply and demand. Near term support for the EUR is seen around $1.3500 as the currency stayed above that level last week.
DATA: German PPI and ECB President Trichet Speaks            
• The gold price rose $5 to $1,125 this morning as gold was buoyed by renewed concerns over Greece’s fiscal situation. While the gold price has generally moved in lockstep with the euro over the past several years, in recent months its correlation versus both the euro and other fiat currencies has waned. This morning’s developments further illustrated this trend, as the gold price rallied in spite of a 0.4% drop in the euro to 1.368 against the U.S. dollar.             


For more information or to request a call back click here


BP/USD 1.5184
GBP/EUR 1.1152
EUR/USD 1.3613
GBP/JPY 137.38
GBP/AUD 1.6481
GBP/NZD 2.1284
GBP/ZAR 11.091
GBP/CHF 1.6029
GBP/CAD 1.5447
GBP/SGD 2.1175
GBP/THB 48.794
GBP/HKD 11.784 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
Senior Foreign Exchange Broker
+44 (0)20 7959 6851