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The euro makes short term gains between sterling and US dollar

Published:  24 January, 2012

The euro has had a good few days gaining against sterling and the US dollar.

Currency rates - January 18

Currency Rates

EURO/GBP - 1.1954

US$/GBP - 1.5540

CHF/GBP - 1.4428

CAN$/GBP - 1.5691
AUS$/GBP - 1.4838
ZAR/GBP - 12.4261
JPY/GBP - 120.01
HKD/GBP - 12.0648

NZD/GBP - 1.9238

SEK/GBP - 10.5068

AED/GBP - 5.7144

US$/EURO - 1.3005

INR/GBP - 77.78

Market opinion is that this is more about investors covering their short positions on the euro rather than any real change in the euro's fundamentals. The euro zone still needs to agree the Greek bailout and find a solution to other euro zone countries debt problems.

Wednesday will be a key day for releases as both the Bank of England release the minutes from their last meeting and the Federal Reserve meet. There is likely to be a lack of direction until this happens.

An increase in risk appetite resulted in the US dollar losing a bit of ground against sterling. Still in a fairly narrow range and we await Wednesday's first Federal Reserve meetin which will detail its expectations for the US economy. .

Elsewhere commodity backed currencies benefited from increased risk appetite.

Supplied by Nick Ryder of Smart Currency Exchange, the currency partner to Harpers Wine and Spirit who have teamed up with Smart to provide readers with a free bespoke currency service. Go to for more information or call on 0207 898 0500.