Sterling Gains against Dollar and Euro - negative movement against New Zealand Dollar and Australian Dollar

Sterling has had a mixed day so far today making gains of 0.86% against the Euro and 0.82% against the Dollar whilst making a loss of 0.44 % and 0.12% against the AUD and NZD respectively at the time of writing this post.

It appears that investors shifted funds around with baited breath awaiting the release of key data for the U.K throughout the week which may indicate if the recession is slowing or not.

The GBP - EUR rate hit an 11 day high over the course of the afternoons trading after the Euro came under vast pressure as speculation has started to begin on whether the recession for the 16 zone economy may last longer than that of the U.K??????

"Sterling is one of the risk plays, so any kind of semblance of risk appetite coming back and sterling has been one of the ones to capitalise," said Daragh Maher, deputy head of foreign exchange research at Calyon in London.

It appears now that even with the MP scandals released after the past week or so confidence in the Pound has not taken a hit.

"There's a feeling that we've had all the bad news on sterling and the euro zone is perceived as having more problems ahead," a London-based trader said.
"Despite the fact that the political landscape looks horrible there is an underlying sentiment that sterling is undervalued," he said, referring to the British parliament's expenses scandal.

I personally believe that Sterling will recover in the coming months but again anything can happen with the markets in the current economic climate as surprises are popping up everywhere so the smart ones amongst us will ensure we are in a position to take advantage of any spikes in the market to make that currency purchase cheaper.

Feel free to get in touch should you wish to discuss any of the information in this report and i will happily assist.