Sterling rose to a three-week high versus the dollar this morning whilst the Euro has made a brief recovery following an ECB interest rates announcement.

Pound Sterling – UK Markets

The pound rose to USD1.5333 earlier today, its highest level since March 17th, with the week's robust set of data keeping the wind in Sterling’s sail. Yesterday's decision to leave interest rates unchanged went virtually unnoticed amongst speculators but Sterling held firm since production data came in above market expectations yesterday while house price data for March showed an increase of 1.1%. Today's producer price data should provide further direction as to whether or not inflation continues to edge lower as suggested by the Bank of England's price forecasts. Sterling has since settled from its high against the Dollar to trade at 1.5284 at 0904 GMT and EUR1.1449.

US Dollar – US Markets

US weekly jobless almost passed everyone by yesterday, as all eyes remained on Greece and the Euro. They showed a surprise increase of 18k to hit 460k, underlining Ben Bernanke's sentiment that the US is not yet out of the woods. The greenback has spent most of the day in erratic decline against Sterling, but began to pare losses by the middle of the Asian market hours. The pair currently trades at USD/GBP0.6542 and at 0910 the Dollar traded at 0.7491 against the Euro.

Euro – European Markets

The Euro was provided assistance earlier today when the European Central Bank announced that interest rates would be held steady and that there was little fear of a sovereign default by Greece. Though expected, this gave the single currency a much needed boost against the US Dollar, but it's hard not to see how this won't just delay the inevitable and push the Euro back down to it’s lows of 1.3270. Against Sterling, the Euro witnessed two sharp spikes after the announcement, but was unable to sustain its growth and fell back into its downtrend, sending a wave of gossip among analysts that a similar fate could be in store for the EUR/USD in today's trading. Those making a forex transfer in either Euros or Dollars will be advised to keep an eye on any news concerning Greece.

Other Currencies – Highlights

Australia’s dollar headed for a second weekly gain versus the greenback this morning as the nation’s interest-rate advantage over the US widened to near the most since 2008. Meanwhile, anyone making a foreign exchange transfer with the Japanese Yen may want to hold fire as the currency dropped for a second day against the Euro. If you want to get the best rates for your overseas transfer, call us now on +44 (0)20 7740 0000