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It was a quiet day on FX markets yesterday with most crosses not straying from ranges that had been set down last week.
GBP/EUR danced around the 1.11 level after services and manufacturing PMIs from the eurozone showed that expansion in those industries was still happening albeit it a reduced rate than previous. That caveat weakened the euro slightly but did not deal it a knock-out blow.
The dollar continued to lose ground on a trade weighted basis as equity markets moved upwards and investors sought to take on more risk. In an interesting aside an auction of 2 year US government debt was covered 3.16 times yesterday; this cover ratio is a lot higher than usual and shows that there is a lot of nervous investors still in the market.
It is a busy day on the data calendar with both US (0.8%) and German GDP (0.7%) revisions due; the UK’s is tomorrow. We also have US consumer confidence, Case-Shiller House Prices and the Fed minutes. We would expect the dollar to be fairly volatile after the GDP figure and continue now until the US holiday on Thursday.
Latest Exchange Rates At Time Of Writing
| Indicative Rates | Sell | Buy |
| GBP/EUR | 1.1083 | 1.1108 |
| GBP/USD | 1.6522 | 1.6546 |
| EUR/USD | 1.489 | 1.4913 |
| GBP/JPY | 146.35 | 146.7 |
| GBP/AUD | 1.8034 | 1.8057 |
| GBP/NZD | 2.2819 | 2.2851 |
| GBP/CAD | 1.7558 | 1.7595 |
| NZD/USD | 0.7235 | 0.7254 |
| GBP/ZAR | 12.42 | 12.47 |
| USD/ZAR | 7.51 | 7.55 |
| GBP/PLN | 4.5719 | 4.5996 |
| EUR/JPY | 131.96 | 132.22 |
