Sterling Rates Surge For Transferring Currency Down Under

The Pound has been having a volatile time as yesterday’s unexpected fall in the unemployment benefit count saw what has emerged to be a fairly short lived rise on the Euro. The nuclear crisis in Japan is seeing the safe haven currencies strengthen – in particular the value of the Yen against the Dollar is the highest since the Second World War. The Australian and New Zealand Dollars are experiencing severe slumps as their exports to Japan are seen as being in jeopardy. The Sterling rate against the Australian and New Zealand Dollars are currently preferential so this could be a good time to speak to your broker for Sterling transfers into these currencies.

Pound Sterling – UK Markets

The Pound had a short lived rise on the Euro yesterday following the surprise fall in the number of the individuals claiming unemployment benefit. However, this news was counter-balanced by the ILO unemployment measure which rose to a ten month high. Yesterday’s data also revealed that wage growth picked up in the last quarter of 2010. So far today has seen Sterling pushing up against the US Dollar following declines yesterday spurred by the Japanese nuclear crisis which has strengthened the Dollar as a safe haven. There has been volatile movement occurring against the Euro so far today.

US Dollar – US Markets

The US Dollar is sharply slumping against the Yen which is still strengthening via its status as a safe-haven currency given the nuclear uncertainty. Yesterday saw US data reporting that wholesale monthly food prices jumped by 3.9 percent which was the highest monthly increase in thirty seven years. There are expectations for similar price rises in consumer food as seen in wholesale food in Thursday’s CPI report following the interest rate hold at 0.25 percent by the Federal Reserve on Tuesday evening.

Euro – European Markets

The Euro fell against the Pound and the Dollar yesterday but has surged against the Dollar so far over the course of today. There has been some more uncertainty cast over when the European interest rate hike might occur however which could weaken the Euro going forward if these concerns mount. Central bank policy maker Christian Noyer has suggested that European officials will have to assess the potential impact of the events in Japan on Europe going forward before making a decision on interest rates. Switzerland held interest rates at 0.25 percent this morning.

Other Currencies – Highlights

The Yen is at the highest level since the end of World War II against the US Dollar as funds are pumped into the currency as a safe haven and following the injection of cash by the US Government. This is also due to the fact that speculation that Japan may immediately intervene to weaken the currency is now not seen as likely.