Sterling finishes marginally up against euro

The pound strengthened by 0.08 cents (0.07%) against the euro yesterday to close the day at 1.1761.

• In early trading yesterday sterling strengthened against the euro, after the Confederation of British Industry reported that the UK’s financial service companies were more optimistic now than at any point in the last two years.
  
• Elsewhere, a report released by property intelligence company, Hometrack, which showed the annual fall in house prices in England and Wales slowed for the third consecutive month in June, also helped the pound’s cause.
  
• Finally, strong London equities drove sterling’s gains yesterday. The FTSE 100 eventually finished up 53.02 (1.25%).
  
• In trading so far today the pound has risen sharply against the euro as improved sentiment towards the UK economy continues.
  
• There are no major announcements due in the eurozone today, whilst in the UK revised first-quarter GDP and current account figures are out at 09.30 BST.

Sterling up after CBI survey

The pound strengthened by 0.44 cents (0.27%) against the US dollar yesterday, finishing the day at $1.6567.

• In early trading yesterday sterling rose against the dollar, after a report released by the property company Hometrack showed the annual pace at which house prices in England and Wales were falling slowed for the third successive month.
  
• Together with the news from the CBI that British financial service companies were more positive now than at any time in the last two years, this report stoked sentiment towards the UK’s chances of recovery, benefiting the pound as a result.
  
• However, the pound’s gains were capped by the news that Chinese officials were not looking to diversify their reserve currency holdings any time soon. This was positive news for the dollar, following months of debate about the use of an alternative global currency to the greenback.
  
• In trading so far today the pound has resumed its rise against the greenback as improved risk appetite continues to sweep the market.
  
• There are important announcements due on both sides of the Atlantic today. In the UK, revised first-quarter GDP and the latest current account figures are out at 09.30 BST, whilst in the US CB Consumer Confidence data is out at 15.00 BST.

Euro strengthens after confidence survey

The euro strengthened by 0.26 cents (0.18%) against the US dollar yesterday to close the day at $1.4081.

• In early trading yesterday the euro rose slightly against the dollar as gains on global equity markets stoked appetite for riskier currencies.
  
• In addition, a better-than-expected eurozone consumer confidence survey for June released by the European Commission buoyed demand for the single currency. It revealed a rise to 73.3 points this month from 70.2 points in May.
  
• However, the news that Chinese officials had ruled out any sudden changes in their foreign exchange reserve policy stemmed the dollar’s falls. Most of China’s currency reserves are held in US Treasuries.
  
• In trading so far today the euro has resumed its rise against the greenback as improved risk appetite continues to sweep the market.
  
• There are no major announcements due in the eurozone today, whilst in the US CB Consumer Confidence data is out at 15.00 BST.

Aussie weakens after falls on equity markets

Sterling strengthened against the aussie yesterday after a drop in local stocks reduced demand for the higher-yielding currency.

• Following mixed cues from Wall Street on Friday, Australian stocks fell yesterday, weakening the higher-yielding aussie as a result. A drop in oil prices also weakened the Australian currency.
  
• Important retail sales and building approvals data are out in Australia overnight tonight, with revised UK first-quarter GDP and current account figures out at 09.30 BST this morning.

Kiwi gains on business survey

The kiwi rose against the pound yesterday after a report showed growing optimism amongst New Zealand’s business community.

• A report released by ANZ National Bank Ltd. spurred the kiwi’s gains yesterday, after it revealed New Zealand businesses became more optimistic in June. A net 8.3% of companies surveyed said they expected sales and profit to increase over the next 12 months, compared with 5.5% last month.
  
• However, strong London equities capped the kiwi’s gains to some extent, although it still finished comfortably up after enduring losses at the end of last week.
  
• Important UK revised GDP and Current Account data is out at 09.30 BST today.