Skip to content

US gains on Euro but fails to impress on other major currencies

US Dollar:
The US dollar strengthened against the euro and fell against most major currencies as risk aversion returned to the market on renewed uncertainty over Greece’s debt crisis. However, general sentiment in the market remains somewhat positive as strong US corporate earnings and rebounding shares boosted risk appetite. Apple Inc posted first quarter earnings on Tuesday that far exceeded expectations, while Goldman Sachs and Morgan Stanley also announced strong results.
DATA: Existing home sales, Unemployment Claims and PPI.    


The U.K.'s weakening currency is poised to strengthen its economy, boosting exporters and setting the stage for a stronger recovery later this year or in early 2011. The U.K., which is struggling with sluggish growth and a huge budget deficit, has trailed many peers in recovering from the downturn.  But a weaker pound, which makes exports more competitively priced overseas, has manufacturers reporting higher export orders and export pros¬pects in business surveys. One benchmark comes Friday, when the government reports its initial assessment of first-quarter gross domestic product. Government data show exports stabilizing. Britain's Office for National Sta¬tistics reported that in February, imports declined and exports rose at the fastest pace since 2003, driven by sales of chemicals. While February's figures are artificially high given that the previous month's numbers were undermined by Britain's worst winter in decades, they still proved that the bad January figures were a blip and not a trend. More importantly, the February data highlighted the rising demand from the U.S. and non-European regions—adding to hopes that a global rebound could lift Britain. Sales of British goods to members of the euro zone rose about 3% in February from January, the government reported, while sales to non-European Union members jumped 15%. Similarly, in raising its forecasts for the global economy Wednesday, the International Monetary Fund predicted the U.K. economy will grow by 2.5% next year, close to the U.S.'s 2.55%.
DATA: Retail sales and public sector net borrowing.

The euro fell for the fifth day versus the US dollar to a near two-week low as spreads between Greek and Ger-man bond yields hit a 12-year high, highlighting uncertainty about how Athens would resolve its debt crisis. The single currency came under pressure again as the premium that investors demand to buy Greek government bonds versus Euro Zone benchmark Bonds widened beyond 500 basis points. The market seems to be losing confidence in the prospect for Greece, which should continue to weigh on the euro.
DATA: No major data to be released today.



The Australian dollar remained strong against the US dollar, aided by firm Asian stocks. The Aussie also re-sumed its advance against the kiwi as investors continue to favour the Aussie on the divergent interest rate out¬look between the two countries. The New Zealand dollar was pushed lower on talks that kiwi rates may not rise in June. The New Zealand dollar was also hurt as investors are reluctant to chase the kiwi too high after Tues¬day's tame inflation data which underlined the central bank's position of no rush to raise interest rates.


For more information or to request a call back click here


GBP/USD 1.5451
GBP/EUR 1.1515
EUR/USD 1.3415
GBP/JPY 143.76
GBP/AUD 1.6629
GBP/NZD 2.1651
GBP/ZAR 11.4526
GBP/CHF 1.6495
GBP/CAD 1.5396
GBP/SGD 2.1175
GBP/THB 49.501
GBP/HKD 11.993 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