Foreign Currency News Updates

Pound:
Sterling had a strong performance yesterday ending the day above the 1.14 level as threats of a hung parliament subsided momentarily coupled with eurozone concerns ever increasing. This morning sees Sterling come away from this level as last night’s political debate revealed that both Gordon Brown and David Cameron failed to impress in the debate.

Who won the debate? in my eyes.as follows:
1/ Nick Clegg Liberal Dems
2/ David Cameron Cons
3/ Gordon Brown Labour

Euro:
Risk aversion for eurozone debt is now in full swing as the bond markets show weak eurozone countries taking losses on their sovereign debt, Greece and Portugal the big losers as their yields tick up. As a result the euro is showing losses in the FX markets, down 0.54% against Sterling at 1.1384 and down

The major mover for Sterling came from a narrower than expected trade deficit at £6.1billion. It will be interesting to see if improved trade deficit figures can be sustained for the long term considering exports have improved recently due to a harsh winter and a fall in Sterling. The outlook still remains negative for Britain

Sterling got off to a mediocre start this morning as the RICS House Price Balance came in lower than expected showing house prices did not show a price increase at the levels analysts were hoping for. Nevertheless, Sterling has held on for the time being and like the Greenback is trading within tight ranges against

Euro:
It would appear that the bailout package decision has caught many off guard seeing as the announcement was made after market close on Friday but pre-market Monday morning. I suspect it was done to burn many speculators who had shorted the euro as well as to stem the spiralling bond yields, at one point hitting

Pound:
Sterling is accumulating healthy gains this morning, namely against the U.S. dollar, currently up over half a percent and at three-week highs of $1.5353. Sterling strength comes off the back of robust economic data as the Halifax Bank of Scotland House Price index showed property prices rose 1.1%, up on market expectations of a 0.6%

Pound:
Political uncertainty is the driving force in Sterling movements as polls continue to show that a hung parliament is still a real concern. Despite a two day BoE policy meeting ending today it is widely anticipated that monetary policy will remain on hold as the BoE looks to ride out the storm of the elections

Pound:
Every country has a specific problem that is hampering recovery, whilst Britain seems to have more than others, the threat of a hung parliament is the driving force for Sterling losses. Prior to the Easter weekend Sterling had rallied impressively against all of its major trading pairs. However, the fall on Tuesday was almost inevitable

Pound:
The pound has maintained it’s strength against the Euro after the Easter break but has fallen slightly vs. the US Dollar as the market views an improved political situation in the UK with an election likely to be called by Gordon Brown today and prospects for a hung parliament reducing.
In economic news the Telegraph reported