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Yen falls against 15 of 16 major counterparts on weak risk aversion

Pound As we see out the end of August, its not just sun worshippers which can be forgiven for thinking what a wasted month. Sterling sellers also had a torrid time as the UK currency hit a seven week low against the euro, despite the single currency continuing to suffer against other majors from the ongoing debt crises. Even against the dollar we saw another two cent lost this week alone as GBP/USD fell below the $1.63 handle. Negative views on the UK to force its way out of the doom and gloom of another potential recession have hindered the pound and dragged it down throughout the last month. Early this morning we saw UK Nationwide house prices number come in lower than expected with a number of –0.6%, when analysts were expecting a rise of 0.1%. We have seen a slight pull back in GBP/EUR this morning in the pounds favour as the Greek story with a possible exit form the euro areas has hurt the single currency as GBP/EUR has gained a cent to see the currency pair come close to 1.1350 level.   
Data 09.30: Manufacturing PMI 48.9 from 49.1. Speaker: MPC member Fisher.


The euro extended losses as Greece denied media rumours that a New York based legal adviser was hired to prepare the country to leave the euro area. We also saw euro weakness as data showed unemployment in the 17-nation region held at 10% in July from the previous month. The single currency has now shed two cents versus the dollar this week after last weeks gains saw EUR/USD hit $1.4547. Against sterling we had seen the single currency hold its own as the currency pair hit a seven week high of 0.8886 yesterday, but even against the pound there has now been some weakness with a cent lost overnight. The big move for the euro came against the Swiss franc, as a whopping 3.5% has been lost this week alone to push the currency pair down to EUR/CHF 1.1524.
Data 09.00: Final Manufacturing PMI.


The dollar has now erased all of last weeks losses versus the euro as stronger than forecast economic data damped bets the Federal Reserve may move to stimulate growth. The dollar has appreciated 0.9% in the past month, according to Bloomberg indexes, which tracks 10 developed nation currencies. US Treasury Secretary Timothy Geithner will meet with a Federal Reserve advisory group later today for discussions on the economy and jobs. Fed policy makers will then meet on Sept 20th to more fully debate their options at a two-day meeting that was originally scheduled to last one day. Jobs data yesterday did come in slightly lower than expected as ADP numbers printed a figure of +91k workers added, under the 100k forecast. This didn't hurt the greenbacks value though as it traded higher versus the pound and euro.
Data 13.30: Unemployment Claims 409k from 417k. 15.00: ISM Manufacturing PMI 48.7 from 50.9.


• The yen fell against 15 of 16 major counterparts, reaching the lowest level against the dollar in almost a week, as a Chinese manufacturing index rose in line with forecasts and Asian stocks rallied for a sixth day, dampening demand for safer assets.
• The Aussie currency gained versus its major rivals after AUS July retail sales rose more than expected.
• Norway’s Krone gained the most over the past month against 9 counterparts tracked by Bloomberg.


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GBP/USD                        1.6224

GBP/EUR                        1.1358

EUR/USD                        1.4295

GBP/JPY                         124.78

GBP/AUD                        1.5166

GBP/NZD                         1.9121

GBP/ZAR                         11.3645

GBP/CHF                         1.3064

GBP/CAD                        1.5869

GBP/SGD                        1.9532

GBP/THB                         48.50

GBP/HKD                        12.6325

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 6917      


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