Pound Sterling - UK Markets

Sterling currency rates are higher this morning, rising against its major currency partners with the exception of the Norwegian kroner and New Zealand dollar. The pound is trading 0.24% higher against the US dollar at 1.63 and has gained 0.4% against the euro to find support above 1.11.

The Bank of England minutes show the MPC was unanimous in voting to keep interest rates on hold and maintain current levels of QE. This morning the CBI has predicted the UK economy will grow by 0.3% in the third quarter, with the economic future "brightening" thanks to a weak pound and a recovery in global trade levels. Mortgage approvals are also up 81% from last year showing that the property market and interbank lending are recovering from the slump. This has allowed the pound to trim losses against its major currency partners and there is no further data in the UK today.

US Dollar - US Markets

Currency rates for the US dollar have weakened this morning as risk appetite in the market improves. The dollar is lower against the yen, pound and Australian and New Zealand currencies, while gaining ground on the euro and Brazilian real.

The greenback suffered weakness yesterday, sinking 0.9% against the pound as confidence grows in the market. Economists are predicting we could see further weakness from the US dollar as the major economies enter a recovery period. An interest rate decision from the Fed is due later in the day, along with a speech from Treasury Secretary Geithner.

Euro - European Markets

Currency rates for the euro are largely weaker this morning, falling against its major Asian and European currency partners with the exception of the yen and Swedish kroner. The euro is currently trading at 0.89 versus the pound having lost half a percent and is valued at 1.47 against the US dollar.

Industrial new orders rose 2.6% in the eurozone in the last month and declined by -24.3% in the year to date. The eurozone purchasing manager index for services rose to 50.6 in September, while manufacturing climbed by less than markets were expecting to 49.0. There is no further data in the eurozone today although euro exchange rates could be affected by the US interest rate decision.

Other Currencies - Highlights

Currency rates for the New Zealand dollar have soared after the country unexpectedly emerged from recession, growing by 0.1% in the third quarter. This ends six consecutive quarters of contraction and sent the New Zealand dollar to a 13-month high against its US counterpart, gaining 2.8%. The New Zealand dollar is currently valued at 1.37 per US dollar.

Producer prices in South Africa have fallen for the fourth consecutive month, after a rally in the rand lowered the cost of imports. Prices fell at an annual rate of 4%, rising from the 3.8% recorded last month after the rand has rallied 29% against the US dollar in the last year. This has led to falling inflation for South Africa recently, although the central bank voted to leave interest rates unchanged yesterday signalling the country may be stabilising.