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CURRENCY
RATE
EURGBP
Euro - Sterling
0.7339
GBPEUR
Sterling - Euro
1.3300
GBPUSD
Sterling - US Dollar
1.9311
EURUSD
Euro – US Dollar
1.4360
GBPAUD
Sterling - Australian Dollar
2.1320
GBPNZD
Sterling - New Zealand Dollar
2.4455
GBPCAD
Sterling - Canadian Dollar
1.9315
GBPZAR
Sterling - South African Rand
14.9302
EURSEK
Euro - Swedish Krona
9.4159
EURDKK
Euro - Danish Krone
7.4514
EURNOK
Euro - Norwegian Krone
7.9971
GBPSEK
Sterling - Swedish Krona
12.6549
GBPDKK
Sterling - Danish Krone
10.0144
GBPNOK
Sterling - Norwegian Krone
10.7470
GBPJPY
Sterling – Japanese Yen
211.50

INTEREST RATES

UK
Base Lending
5..25
USA
Base Lending
3.00
EUROPE
Base Lending
4.00

Annual Euribor
4.75

Monthly Euribor
4.29

3 Month Euro Libor
4.78

6 Month Euribor
4.79

IRPH
5.56

Latest Market News

Stronger Inflationary Pressures Drives British Pound Higher

The UK economic calendar is chock full of important economic data this week.

January producer prices were released yesterday morning and much stronger than expected numbers helped the British pound recover some of last week’s extensive losses. The numbers suggest that the Bank of England could slow down their pace of rate cuts as prices at the factory gate surged to 16 year highs. Consumer prices are due for release today and the forecast is for a 0.6 percent drop. Given the rise in producer prices and the low forecast, there is a decent chance that we will also see consumer prices grow more than expected. The rest of the data released yesterday mattered little as the wider trade deficit was offset by a rebound in house prices. The UK economy is slowing and the question ahead is whether high inflation will prevent the BoE from easing interest rates as aggressively as necessitated by the UK economy.

US Dollar Gives Back Gains on Quiet Trading Day

The US dollar weakened against every major currency except for the Canadian dollar as new data showed home price inflation to be slowing, which grants the Bank of Canada some room to cut rates. The dollar weakened against the Euro despite worse than expected French and Italian Data. The market is froth with speculation about how the ECB could resort to cutting rates as a means to support the slowing economy. The Pound Sterling had a mixed day as prices swung back and forth but remained up against the US dollar as a widening trade deficit along with rising inflation cut speculation of aggressive rate cuts by the Bank of England. The Yen appreciated the most against the US dollar as investors reduced their net positions in carry trades, while the Australian dollar soaked in minor gains as the hawkish Reserve Bank of Australia is expected to increase key rates as inflation forecasts were raised.
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