Tuesday, 6 October 2009

Pound Sterling drops once again following poor manufacturing data - drops against EUR AUD NZD SEK DKK CHF CZK ZAR CAD JPY - Small gain on USD

This morning has seen Sterling once again start to falter against a basket of major currencies following much weaker than expected manufacturing data, however a house price release from Halifax came out slightly better than expected - so not all bad news for the U.K

Although the data released this morning was a mix of positive and negative the Pound has dropped by 0.40% against the Euro, 0.49% against the New Zealand Dollar, 0.36% against the Rand and 0.51% against the Swedish Kroner.

Sterling has also dropped against the Australian Dollar but this is mainly due to the Reserve Bank of Australia surprisingly raising interest rates by 0.25% to 3.25% overnight.

For those that aren't aware, an interest rate hike usually is seen as positive for the economy in question and a drop negative, as investors look to shift their funds into that currency for a better return.

The AUD and NZD may still strengthen off the back of this, as people may start to look at carry trading between Sterling and the currencies that are currently benefiting from higher interest rates.

This is a brief summary of todays report, should you wish to make a currency enquiry Email Me
I will ensure I get back to you as soon as possible to discuss the options available to you. Click here to read the full report on our main website

If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me

www.currencies.co.uk


Have a great day and thanks for reading!

Daniel Wright

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