Currency Rates

EURO/GBP - 1.148

Sterling slid yesterday as closer inspection of the minutes from the Bank of England’s interest rate decision meeting revealed – despite a ‘unanimous decision’ – that for some members the arguments were ‘very finely balanced’. In addition, UK unemployment claims unexpectedly jumped by 23,500 in January which also weighed on sterling as unemployment hit a 13 year high. Whilst this can be attributed to temporary workers from the festive period once again looking for work, it paints a worrying picture. Overnight, sterling fell further against US dollar as Asian stock markets reacted to poor Australian company earnings announcements. Mortgage approval data is out today and is expected to show an improvement, but there are concerns over the consistency of the figures, as many lenders have increased market share in the last 18 months which could lead to inconsistencies in the figures. Call in today to avoid losing out.

In the Euro zone, the relative stability of the euro over the last few days might suggest that the panic over Greece has subsided. However, despite the EU’s assurances to step in, it is important not to get complacent as there is a serious issue here that can easily blow up again. No bailout would mean an extended recession for Greece and serious problems in the country, but a bailout would threaten European political stability. A key German minister spoke out against ‘a single German euro’ being used to help which added to the euro’s losses. Greece is still an issue and could cause volatility at any point – call today to secure the best rate.