Sterling weakens against euro and dollar

Published: 11 April, 2012

Sterling had a mixed day weakening off against the euro and the US dollar.

Currency rates - April 11

EURO/GBP - 1.2124

US$/GBP - 1.5901

CHF/GBP - 1.4574

CAN$/GBP - 1.5938

AUS$/GBP - 1.5448

ZAR/GBP - 12.682

JPY/GBP - 128.72

HKD/GBP - 12.35

NZD/GBP - 1.9434

SEK/GBP - 10.791

AED/GBP - 5.837

US$/EURO - 1.3115

INR/GBP - 81.87

It did however strengthen against the commodity backed currencies as risk aversion became the main driver in the market once more. With very little data released from the UK today the market will look elsewhere for influence.

The euro was weak against the Japanese yen and US dollar yesterday; but, was strong against the majority of other currencies. Fears that Spain would be the next European country needing a bail out were at the forefront of investor's minds as Spanish bond yields rose once again. Another light day for data in the Eurozone today means the markets will look for any further developments regarding Spain for influence.

The US dollar had a strong day strengthening against the majority of currencies bar the Japanese yen as risk aversion drove the market. Data released from the US today includes the Federal government's monthly budget balance figures, the Beige book and a member of the Federal Open Market Committee is also speaking.

Elsewhere, The New Zealand dollar, Australian dollar and Canadian dollar all had a poor day yesterday as China unexpectedly posted a trade balance surplus of US$ 5.4 billion. The Japanese central bank kept its official call rate on hold and did not expand its asset purchase facility which saw the yen strengthen against the majority of currencies. Business confidence figures from New Zealand were released late last night and data from Australia, Canada, Japan and China is also released today.

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