Tuesday currency update

6 December, 2011


Today has seen a raft of news causing volatile exchange rates around the world. Apart from the headline Euro news, where Angela Merkel and Nicolas Sarkozy reaffirmed their commitment to reform the Eurozone ahead of Friday’s summit, S&P have placed most of the Eurozone on ‘credit watch’ meaning their debt may be downgraded from AAA, giving some Euro weakness this morning. However news from elsewhere has been moving markets today: – Australian interest rates were cut to 4.25%, weakening the Australian Dollar and improving rates for money transfers to AustraliaCanadian interest rates were held at 1%, but much better than expected construction figures send the CAD higher this afternoon – The British Retail Consortium announced 0.7% retail sales growth in the UK, the weakest since May – Eurozone GDP was unrevised at 1.4% – German factory orders increased more than expected The net effect has been volatility for the Pound against most major currencies today. Tomorrow we have industrial data from Italy and France, before Thursday’s monthly announcements from the European Central Bank and Bank of England, on interest rates and quantitative easing. With so much going on be sure to contact Currency Index for the latest news affecting your own transaction.