Sterling slipped against the US dollar yesterday after investors took profits from several days of gains.
Sterling slipped against the US dollar yesterday after investors took profits from several days of gains.
Currency rates - October 12
EURO/GBP - 1.1418
US$/GBP - 1.5594
CHF/GBP - 1.4144
CAN$/GBP - 1.6009
AUS$/GBP - 1.5743
ZAR/GBP - 12.2948
JPY/GBP - 119.57
HKD/GBP - 12.1314
NZD/GBP - 1.9876
SEK/GBP - 10.3982
US$/EURO - 1.3652
Mixed UK economic data failed to stop concerns, with UK growth data for August showing industrial output exceeding expectations with a 0.2% increase, but manufacturing growth a 0.3% contraction. Furthermore, comments from a Bank of England policymaker mean that UK monetary policy is set to remain loose for some time.
The euro shed Monday's gains against the US dollar as investors became concerned over a Slovak vote on changes to the European Financial Stability Fund appeared to hit snags. Also, whilst the 'troika' of the EU, IMF and ECB confirmed that the next tranche of Greek aid would be paid in early November, it warned that Athens had made patchy progress in meeting the terms of the bailout.
In the USA, the US dollar has stabilised over the past few days as fears over another recession subside following last week's better than expected non-farm payroll data. The US dollar strengthened against the Swiss franc as investors moved out of the ultra safe Swiss currency.
Elsewhere, Turkey has made moves to defend the Turkish lira as investors pull back from emerging market stocks in the face of a European default. The Turkish central bank last week sold a record $1.1bn to keep the lira off record lows against the US dollar.
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