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Range of the week: 1.1647 to 1.1784 (23/10 to 30/10)
Variance of the week on £10k=137€

Stirling has continued to weaken against the Euro over the last week and has dropped just under a cent to the current level of 1.1675. Following on from last week’s update, this can primarily be attributed to the Euro being used as an alternative safe haven currency whilst the dollar and the US recovery are struggling. This is not to say that the ECB and Eurozone are doing particularly well as the ECB’s shrinking balance sheet is still an issue with the ECB arguing that it is “good news” that banks are repaying their loans but with private analysts taking rather the opposite view. In the UK-MPC member and B of E Chief economist Spencer Dale said that “tightening will be slower than in previous recoveries” and firmly confirmed that further QE was still a very distinct possibility. Important data this week were German unemployment figures which came out as expected at 6.9% as well as the Eurozone unemployment figures due to come out tomorrow (expected to remain at 12%). Further data of significance will be the Eurozone consumer price index (due out tomorrow) which is expected to remain static at 1.1%.

Range of the week: 1.6024 to 1.6256 (23/10 to 30/10)
Variance of the week on £10k=$232

As already mentioned-the USA’s apparent slow recovery and debt ceiling issues have very much been in the news with data supporting the slowing recovery as retails sales came out worse than expected (-0.1%) as well as the US’s Conference Board’s consumer confidence gauge for October coming in well below expectations at 71.2. Major data to come out still will be the Fed’s rate decision due to be announced later this evening (widely expected to remain at 0.25%) and USD ISM manufacturing figures on Friday expected to come in at 55.1. All the negative data and news that have been coming out of the States recently has helped to keep cable at 1.60 plus over the last couple of weeks and maintain Euro/Dollar in the high 1.30’s. The fundamental problems for the States are still very much prevalent with the biggest issue of the raised debt ceiling still of great concern as it has only been extended until early February, at which point the markets are hoping for a more permanent solution to be put into place.

Range of the week: 1.6644 to 1.6955 (23/10 to 30/10)
Variance of the week on £10k=311 AUD

The Pound has managed to regain early October levels against the AUD and seems to be relatively stable between 1.66 and 1.69. Data coming out of Australia is still quite positive however with new home sales (MoM) for September coming in at 6.4% against an expected 3.4%. Despite that-the Pound still manages to hold on to very good levels that are still some of the best rates we’ve seen in the last three years. Other data to come out this week will be Year on Year building approvals (expected to be a massive drop to 1.2% from last year’s 7.7%) which is in line with the Australian slowing housing sector (despite last month’s very positive new home sales data).

Range of the week: 1.9053 to 1.9551 (23/10 to 30/10)
Variance of the week: on £10k= 498 NZD

Stirling has managed to regain some strength against the NZD in the last week pushing the pairing back up to 1.94 from 1.89 just over a week ago. No particular reason for this improvement per se except that as with the AUD - it’s more attributable to a New Zealand economy finally slowing down. The biggest news this week will be the New Zealand’s central bank rate decision due out this evening which is widely expected to remain at 2.5%.

Range of the week: 15.74 to 15.94 (23/10 to 30/10)
Variance of the week: on £10k= 2’000 ZAR

No major news.

Range of the week: 1.6762 to 1.6962 (23/10 to 30/10)
Variance of the week: on £10k= 200 CAD

The Pound is still enjoying some of the best levels against the CAD since January 2013 and therefore it’s still an excellent time to buy Canadian dollars. No major news as of yet but Canadian GDP figures are due to come out tomorrow with an expected improvement of 1.7% in comparison to last year’s 1.4%.
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