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GBP/EUR
Range of the week: 1.2092 (Tuesday) 1.22167 (Today)
Variance of the week on £10k = €124


Until yesterday, Sterling had spent 16 weeks glued around 1.20 with neither any major support or resistance levels being broken. But finally we saw a break above the 19 month high of 1.216. Currently sat above 1.22. For the 5 years I have been here at HiFX, this 16 week tight range between Sterling and the Euro is the longest I have known the rates to be flat.
What caused the Euro to drop from this tight range to hit the 19 month high was possibly based on several factors:

• Spanish government borrowing costs increasing above 6%
• UK growth forecasts from IMF improving
• UK unemployment falling by 35,000, the first fall since last spring

The story of the Euro and its financial woes have now been the dominating concern of the past 24 months, and despite pockets of brief optimism during this time, now it seems these concerns are only getting more common. Yesterday, the IMF for the first time admitted that a break up of the Euro could not be ruled out, fuelling already “fever pitch” fears.

This move above 1.22, despite the Bank Of England minutes warning that the UK economy could contract for 3 consecutive quarters, shows how the concerns in Europe are more of a focus to investors and has, so far, outweighed any gloomy, pessimistic data coming from home soil.

The Euro buyers savoir in this case was brought about by the ongoing uncertainty within the Eurozone, and effectively ended the 16 week, volatility mute spell between the Pound and itself.


GBP/USD
Range of the week: 1.5818 (Monday) 1.5993 (Today)
Variance of the week on £10k = $175


Very quiet for the pair so far. Since the beginning of February this year, the range has failed to break much wider than 4 cents.
Low since Feb 1.5602 (Mar 12th) High since Feb 1.6060 (Apr 2nd)

Elections still the main news story coming out from the U.S.

Any major news or data worth mentioning will be highlighted when necessary.


GBP/AUD
Range of the week: 1.526 (Monday) 1.543 (Today)
Variance of the week on £10k = AUS 170


No major news or data, but worth noting these are still some of the best levels now since the beginning of this year.

2012 low: 1.455 (Feb 15th)

2012 high: 1.55 (Apr 11th)


GBP/NZD
Range of the week: 1.928 (Monday) 1.9550(Today)
Variance of the week: on £10k = NZD 270


Similar story to the GBP/AUD, no major data worth mentioning but levels stronger so far in 2012.

2012 low: 1.863 (Feb 15th)

2012 high: 1.967 (Mar 22nd)


GBP/ZAR
Range of the week: 12.402 (Today) 12.701 (Wednesday)
Variance of the week: on £10k = ZAR 2990


No major news or data


GBP/CAD
Range of the week: 1.572 (Tuesday) 1.593 (Wednesday)
Variance of the week: on £10k = CAD 220


The Bank of Canada said yesterday it “may become appropriate” to begin raising its policy interest rate again after keeping it at 1 percent and extending the longest pause since the 1950s, saying record high household debt levels remain “the biggest domestic risk” to the economy.

Generally speaking, interest rate rises attract investment from around the globe, this could lead to the strength in the Canadian Dollar increasing.
 
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