Euro at Four Month High Against Pound and US Dollar

The theme has broadly continued in the currency markets, with the Euro going from strength to strength whilst the Pound and Dollar fail to recover significantly from the heightened fears following the Bank of England minutes and Federal Reserve meeting this week. This is a very good time for anyone who needs to sell Euros. Alternatively, if you need to protect yourself from further risk with an upcoming transfer into Euros speak to your broker or register an enquiry today. Sterling was trading at the mid-market rate of 1.1758 against the Euro and 1.5682 against the US Dollar at 11.15am this morning.

Pound Sterling – UK Markets

The Pound is still suffering at around its lowest levels since July against a basket of other currencies. This follows the poor public finance figures at the start of this week and yesterday’s Bank of England minutes which highlighted policy members' concerns about the slowing recovery and the increasing likelihood of further quantitive easing measures being required. News on mortgage approvals has only added fuel to the fire – banks approved 31,767 home loans in August which was a drop for the third month in a row and the lowest so far this year.

US Dollar – US Markets

The US Dollar is also performing poorly against both major currencies and commodities. In a similar situation to Sterling, hints from policy makers - this time at the Federal Reserve meeting - suggested that fears are rising over the economy’s stunted growth. The US Dollar index, which measures the Dollar’s performance against a range of other currencies, is at its lowest level in six months. Today’s US data will be significant focusing on the weekly jobless rate which is forecast to come in unchanged and existing home sales which are expected to rise 7.1 percent after last month’s 27.2 percent decrease.

Euro – European Markets

The Euro is still doing well following its run of successful bond auctions this week, sitting high against both the Dollar and Sterling. Portugal was the latest nation to hold a bond auction where 750 billion Euros worth of bonds were sold. Today’s news from Markit that the services and manufacturing sectors cooled sharply in September has done little to bring down the currency with the lowest reading for this data in seven months, although the euro has subsequently softened a little against the pound. The slow down was particularly bad in Greece and Ireland. Business confidence however has continued to rise.

Other Currencies – Highlights

Economists are expecting the Turkish Lira to appreciate, possibly towards its highest levels against the Euro since October 2008 as the economy show signs of improvements and a constitutional referendum reduces political risk. Turkey’s economy grew at an annual 10. 3 percent during the second quarter therefore matching China’s as the fastest expansion in the period among the twenty major economies. For a live quote or to tell us about your foreign exchange requirements, please call us on +44 (0)20 7740 0000