Currency Rates

EURO/GBP - 1.099

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Sterling dropped back below $1.50/ £1 again yesterday after a barrage of poor economic data and as credit rating firms issued warnings on the UK’s sovereign credit rating. In addition, fears of a hung parliament continued to weaken the pound as a Times opinion poll showed the Conservatives neck and neck with Labour. First off, sterling was hit as the latest RICS house price survey showed the biggest drop since April 2008. This was followed later by data showing the UK’s trade deficit had widened to the largest level since August 2008 as exports fell. This is particularly concerning as the Bank of England and many economists seem to have pinned hopes of a UK recovery on the fact that a weak pound should drive exports. However, demand for UK goods and services has clearly not been enough to narrow the trade deficit and this may be a driving factor behind potentially more asset purchasing and emergency funding by the Bank of England. Later this morning, we have manufacturing and industrial production data as well as a first estimate of UK GDP for February. We could see considerable movement yet again – get in touch now to avoid losing out.

In the Euro zone, German exports slumped unexpectedly in January ending a 4 month run of gains. The German trade surplus fell by 5.4bn and with many pinning Germany’s hopes of recovery on exports, the sudden drop saw the euro fall against the US dollar hitting $1.355/ 1 yesterday morning. Out today we have French and Italian industrial production data which is expected to show a slight improvement. Call now for a quote.

Call 0808 163 0102 or +44 (0) 207 898 0541 from outside the UKor fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx