ECFX's blog
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Hello everyone,
My name is Ian Daly and I will be taking over from my colleague Dan Waterman who is currently on leave sourcing new countries for Excel Currencies to expand into.
In his absence I will providing the regular currency up-dates for those looking to keep an eye on the exchange rates and answering any questions you might have.
I will be hoping to contact each of you individually in the coming weeks just so I can get an up-date on what your current situation is and to see if I can help in any way.
If in the mean time you wish to speak to me or have any questions ranging from just a quick quote to compare exchange rates with your current provider to questions about how the whole process works then please do not hesitate to contact me 24/7.
As the office manager I'm constantly keeping an eye on e-mails and aim to reply straight away. So once again please don't hesitate to contact me.
Kind regards
Ian.daly@excelcurrencuies.com
My name is Ian Daly and I will be taking over from my colleague Dan Waterman who is currently on leave sourcing new countries for Excel Currencies to expand into.
In his absence I will providing the regular currency up-dates for those looking to keep an eye on the exchange rates and answering any questions you might have.
I will be hoping to contact each of you individually in the coming weeks just so I can get an up-date on what your current situation is and to see if I can help in any way.
If in the mean time you wish to speak to me or have any questions ranging from just a quick quote to compare exchange rates with your current provider to questions about how the whole process works then please do not hesitate to contact me 24/7.
As the office manager I'm constantly keeping an eye on e-mails and aim to reply straight away. So once again please don't hesitate to contact me.
Kind regards
Ian.daly@excelcurrencuies.com
GBP-EUR 1.1400
Sterling was helped by rebounding stocks today, although a murky outlook for the UK economy and speculation of more monetary easing checked sharp gains.The euro pared early gains to trade flat against sterling at 87.93 pence after talk over the health of the French banking sector pulled the single currency back from a one-month high of 88.86 hit on Wednesday.The BoE on Wednesday cut its expectation for annual GDP growth to around 2.0 percent for the fourth quarter of 2011. In May, it had forecast 2.5 percent growth by the end of the year. The bank also said inflation would fall rapidly in 2012.Markets expect the BoE to keep interest rates at record lows into 2013, with a growing feeling that another round of quantitative easing could be on the cards to stimulate growth, a tool which BoE governor Mervyn King has said may still be needed.Risks to the UK economy are being amplified by the knock-on effects stemming from the euro zone's debt crisis and mounting worries over the French banking sector, which continued to cause high volatility in stock markets.Finance minister George Osborne said on Thursday that Britain was not immune to the international financial market turmoil and added British banks were well capitalised and holding enough liquidity to cope with the turbulence. Market players said sterling's close correlation with banking stocks and the UK's reliance on the financial sector left the pound vulnerable in the current climate.
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling was helped by rebounding stocks today, although a murky outlook for the UK economy and speculation of more monetary easing checked sharp gains.The euro pared early gains to trade flat against sterling at 87.93 pence after talk over the health of the French banking sector pulled the single currency back from a one-month high of 88.86 hit on Wednesday.The BoE on Wednesday cut its expectation for annual GDP growth to around 2.0 percent for the fourth quarter of 2011. In May, it had forecast 2.5 percent growth by the end of the year. The bank also said inflation would fall rapidly in 2012.Markets expect the BoE to keep interest rates at record lows into 2013, with a growing feeling that another round of quantitative easing could be on the cards to stimulate growth, a tool which BoE governor Mervyn King has said may still be needed.Risks to the UK economy are being amplified by the knock-on effects stemming from the euro zone's debt crisis and mounting worries over the French banking sector, which continued to cause high volatility in stock markets.Finance minister George Osborne said on Thursday that Britain was not immune to the international financial market turmoil and added British banks were well capitalised and holding enough liquidity to cope with the turbulence. Market players said sterling's close correlation with banking stocks and the UK's reliance on the financial sector left the pound vulnerable in the current climate.
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.1420
The pound was supported against the euro, as ongoing debt problems in the euro zone dog the single currency. The pound is poised to end July around 1.5 percent higher versus the dollar while posting its best monthly performance against the euro since November.
The pound has benefited as investors have shunned the dollar and the euro due to fiscal issues plaguing those areas, while the UK has been making progress on reining in government spending, although some analysts say this has come at a cost to economic growth.The euro has fallen roughly 3 percent versus sterling so far this month. The euro was little changed on the day at 87.57 pence, hovering near 87.05 touched earlier this month. A fall below that level would take the single currency to its lowest since late May.
UK data has been lacklustre of late, with CBI retail figures on Thursday showing a big fall in sales, reminding investors that consumers are struggling and that growth in the current quarter is unlikely to be encouraging.Some in the market saw the risk of some euro/sterling upside if the U.S. reaches an agreement to raise the debt ceiling next week, which would avert the chance of a technical default.They say this could rekindle demand for riskier assets, which would prod euro/sterling higher, although analysts see technical resistance providing some obstacles.
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
The pound was supported against the euro, as ongoing debt problems in the euro zone dog the single currency. The pound is poised to end July around 1.5 percent higher versus the dollar while posting its best monthly performance against the euro since November.
The pound has benefited as investors have shunned the dollar and the euro due to fiscal issues plaguing those areas, while the UK has been making progress on reining in government spending, although some analysts say this has come at a cost to economic growth.The euro has fallen roughly 3 percent versus sterling so far this month. The euro was little changed on the day at 87.57 pence, hovering near 87.05 touched earlier this month. A fall below that level would take the single currency to its lowest since late May.
UK data has been lacklustre of late, with CBI retail figures on Thursday showing a big fall in sales, reminding investors that consumers are struggling and that growth in the current quarter is unlikely to be encouraging.Some in the market saw the risk of some euro/sterling upside if the U.S. reaches an agreement to raise the debt ceiling next week, which would avert the chance of a technical default.They say this could rekindle demand for riskier assets, which would prod euro/sterling higher, although analysts see technical resistance providing some obstacles.
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.1360
Sterling steadied on Wednesday after Bank of England policy minutes were slightly less dovish than expected, forcing some speculative short positions to be trimmed, but the pound was clouded by uncertainty over the UK and euro zone economies.Monetary Policy Committee members voted 7-2 to keep rates at 0.5 percent, as they did in June. BoE chief economist Spencer Dale and external member Martin Weale voted again to raise rates.The minutes noted that Adam Posen discussed the need for further asset purchases, but no other member joined him, in contrast to last month.Investors had been short of sterling before the minutes were released in anticipation of discussion of quantitative easing, but bought the pound back on evidence of declining support for further asset purchasing.Speculation that the central bank may consider more asset purchasing had built up in recent weeks as lacklustre UK data pointed to a faltering economic recovery and investors pared back bets of an interest rate rise until late 2012.Analysts said focus would now switch to what is expected to be sluggish preliminary UK growth data for the second quarter, due to be released next week. UK retail sales for June released on Thursday are forecast to rises at a modest 0.5 percent.The euro gained around 0.2 percent on the day to trade at 87.94 pence , easing back from around 88.19 pence before the BoE minutes.Technical analysts said the 55-day moving average at 88.27 would need to be convincingly broken to open up further upside potential. Downside support is seen at 87.78, the seven-day moving average.Euro/sterling remained shackled to moves in euro/dollar, which was trading slightly higher on cautious optimism of a deal at the European leaders' summit on Thursday that could help ease Greece's debt problems.From sterling's perspective, investors are concerned the UK's exposure to Europe's debt crisis could hurt the economy, with markets focusing on whether the summit will quell fears of contagion risks from Greece's debt problems.Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling steadied on Wednesday after Bank of England policy minutes were slightly less dovish than expected, forcing some speculative short positions to be trimmed, but the pound was clouded by uncertainty over the UK and euro zone economies.Monetary Policy Committee members voted 7-2 to keep rates at 0.5 percent, as they did in June. BoE chief economist Spencer Dale and external member Martin Weale voted again to raise rates.The minutes noted that Adam Posen discussed the need for further asset purchases, but no other member joined him, in contrast to last month.Investors had been short of sterling before the minutes were released in anticipation of discussion of quantitative easing, but bought the pound back on evidence of declining support for further asset purchasing.Speculation that the central bank may consider more asset purchasing had built up in recent weeks as lacklustre UK data pointed to a faltering economic recovery and investors pared back bets of an interest rate rise until late 2012.Analysts said focus would now switch to what is expected to be sluggish preliminary UK growth data for the second quarter, due to be released next week. UK retail sales for June released on Thursday are forecast to rises at a modest 0.5 percent.The euro gained around 0.2 percent on the day to trade at 87.94 pence , easing back from around 88.19 pence before the BoE minutes.Technical analysts said the 55-day moving average at 88.27 would need to be convincingly broken to open up further upside potential. Downside support is seen at 87.78, the seven-day moving average.Euro/sterling remained shackled to moves in euro/dollar, which was trading slightly higher on cautious optimism of a deal at the European leaders' summit on Thursday that could help ease Greece's debt problems.From sterling's perspective, investors are concerned the UK's exposure to Europe's debt crisis could hurt the economy, with markets focusing on whether the summit will quell fears of contagion risks from Greece's debt problems.Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.1360
Sterling hit a one-and-a-half-month high against the euro on Monday, boosted by a shift out of the single currency as euro zone policymakers struggle to find a solution to the bloc's worsening sovereign debt crisis.The euro fell as low as 87.05 pence, its weakest since late May. The shared currency has already fallen more than 3 percent this month, retreating from a climb above 90 pence at the start of July.It recovered to trade at 87.55 pence, down 0.2 percent on the day. However, renewed losses could see it target its 200-day moving average currently around 86.65 pence and then the late May low of 86.11 pence.Despite a less-than-rosy picture for the UK economy, analysts said sterling's recent run higher versus the euro was unsurprising as negative sentiment towards the euro made the pound a cheap buy above the 90 pence level.The euro struggled in the aftermath of results from European bank stress tests last week which investors said were too lenient as they did not test the impact of a Greek sovereign default.However, analysts said sterling's gains against the euro may be limited due to concerns about the weakness of the UK economy and its high levels of debt.The euro hovered near 87.48 pence, which technical analysts said was an important support level as it represented the 50 percent retracement of the euro's surge in October-December 2008, which culminated in a rise to around 98 pence.A sustained break below the mid-87 pence region would be seen as a sign that further losses may be in store, they said.Analysts said the market's main focus this week would be a meeting of euro zone leaders in Brussels on Thursday to discuss a second bailout for Greece and the overall financial stability of the euro area, adding that any signs the crisis will deepen could dent the euro further.Market participants said the advantage offered by euro interest rate differentials against sterling has been fading as the spotlight remains fixed on the debt crisis, which now risks spreading to Italy, the bloc's third largest economy.However, while investors see more room for sterling to gain versus the euro in the near term, some expect the pound may take a hit later this week if Bank of England minutes add to the view that UK rates will stay chained at a record low 0.5 percent.The Monetary Policy Committee will release minutes on Wednesday from its July meeting, at which rates were left on hold. Short-term interest rate markets do not price in the next UK rate rise until late 2012 .Dovish minutes and any hint of support for further monetary easing from more members of the MPC could undermine the pound, analysts say.Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling hit a one-and-a-half-month high against the euro on Monday, boosted by a shift out of the single currency as euro zone policymakers struggle to find a solution to the bloc's worsening sovereign debt crisis.The euro fell as low as 87.05 pence, its weakest since late May. The shared currency has already fallen more than 3 percent this month, retreating from a climb above 90 pence at the start of July.It recovered to trade at 87.55 pence, down 0.2 percent on the day. However, renewed losses could see it target its 200-day moving average currently around 86.65 pence and then the late May low of 86.11 pence.Despite a less-than-rosy picture for the UK economy, analysts said sterling's recent run higher versus the euro was unsurprising as negative sentiment towards the euro made the pound a cheap buy above the 90 pence level.The euro struggled in the aftermath of results from European bank stress tests last week which investors said were too lenient as they did not test the impact of a Greek sovereign default.However, analysts said sterling's gains against the euro may be limited due to concerns about the weakness of the UK economy and its high levels of debt.The euro hovered near 87.48 pence, which technical analysts said was an important support level as it represented the 50 percent retracement of the euro's surge in October-December 2008, which culminated in a rise to around 98 pence.A sustained break below the mid-87 pence region would be seen as a sign that further losses may be in store, they said.Analysts said the market's main focus this week would be a meeting of euro zone leaders in Brussels on Thursday to discuss a second bailout for Greece and the overall financial stability of the euro area, adding that any signs the crisis will deepen could dent the euro further.Market participants said the advantage offered by euro interest rate differentials against sterling has been fading as the spotlight remains fixed on the debt crisis, which now risks spreading to Italy, the bloc's third largest economy.However, while investors see more room for sterling to gain versus the euro in the near term, some expect the pound may take a hit later this week if Bank of England minutes add to the view that UK rates will stay chained at a record low 0.5 percent.The Monetary Policy Committee will release minutes on Wednesday from its July meeting, at which rates were left on hold. Short-term interest rate markets do not price in the next UK rate rise until late 2012 .Dovish minutes and any hint of support for further monetary easing from more members of the MPC could undermine the pound, analysts say.Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.1430
Sterling hit a 1 1/2-month high against the euro on Monday as the euro zone's festering sovereign debt crisis prompted a shift into the pound on the perception that UK assets were a relative safe haven.
Concerns that European policymakers are failing to get a grip harmed the euro as investors overlooked issues that should be negative for sterling, which include growing speculation that UK interest rates will stay low for months to come as the economy struggles to recover.The euro fell as low as 87.05 pence, its weakest since late May. The shared currency has already fallen more than 3 percent this month, retreating from a climb above 90 pence at the start of the month.Despite a less-than-rosy picture for the UK economy, analysts said sterling's recent run higher versus the euro was unsurprising given that negative sentiment for the euro had made the pound a cheap buy above the 90 pence level.The euro struggled in the aftermath of results from European bank stress tests last week which investors said were too lenient.But some analysts said the fact that all UK banks had made the grade added to the view that the UK financial sector was healthier than in the euro zone, which boosted sterling.He added the euro bloc's problems highlighted the current benefits for Britain in being able to set its own monetary and economic policies.The euro hovered near 87.48 pence, which technical analysts said was an important support level as it represented the 50 percent retracement of the euro's surge in October-December 2008, which culminated in a rise to around 98 pence.A sustained break below the mid-87 pence region would be seen as a sign that further losses may be in store, they said.Analysts said the market's main focus this week would be a meeting of euro zone leaders in Brussels on Thursday to discuss a second bailout for Greece and the overall financial stability of the euro area, and that any signs that the crisis will deepen would hurt the euro against sterling.Market participants said the advantage of euro interest rate differentials against sterling has been dissipating as the spotlight remains fixed on the debt crisis, which now risks spreading to Italy, the bloc's third largest economy.While investors see more room for sterling to gain versus the euro in the near term, some expect the pound may take a hit later this week if Bank of England minutes add to the view that UK rates will stay chained to a record low 0.5 percent.The Monetary Policy Committee on Wednesday will release minutes from its July meeting, where rates were left on hold. Short-term interest rate markets do not price in the next UK rate rise until late 2012 .Dovish minutes and any hint of support for further monetary easing from more members in the MPC could undermine the pound, analysts say.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling hit a 1 1/2-month high against the euro on Monday as the euro zone's festering sovereign debt crisis prompted a shift into the pound on the perception that UK assets were a relative safe haven.
Concerns that European policymakers are failing to get a grip harmed the euro as investors overlooked issues that should be negative for sterling, which include growing speculation that UK interest rates will stay low for months to come as the economy struggles to recover.The euro fell as low as 87.05 pence, its weakest since late May. The shared currency has already fallen more than 3 percent this month, retreating from a climb above 90 pence at the start of the month.Despite a less-than-rosy picture for the UK economy, analysts said sterling's recent run higher versus the euro was unsurprising given that negative sentiment for the euro had made the pound a cheap buy above the 90 pence level.The euro struggled in the aftermath of results from European bank stress tests last week which investors said were too lenient.But some analysts said the fact that all UK banks had made the grade added to the view that the UK financial sector was healthier than in the euro zone, which boosted sterling.He added the euro bloc's problems highlighted the current benefits for Britain in being able to set its own monetary and economic policies.The euro hovered near 87.48 pence, which technical analysts said was an important support level as it represented the 50 percent retracement of the euro's surge in October-December 2008, which culminated in a rise to around 98 pence.A sustained break below the mid-87 pence region would be seen as a sign that further losses may be in store, they said.Analysts said the market's main focus this week would be a meeting of euro zone leaders in Brussels on Thursday to discuss a second bailout for Greece and the overall financial stability of the euro area, and that any signs that the crisis will deepen would hurt the euro against sterling.Market participants said the advantage of euro interest rate differentials against sterling has been dissipating as the spotlight remains fixed on the debt crisis, which now risks spreading to Italy, the bloc's third largest economy.While investors see more room for sterling to gain versus the euro in the near term, some expect the pound may take a hit later this week if Bank of England minutes add to the view that UK rates will stay chained to a record low 0.5 percent.The Monetary Policy Committee on Wednesday will release minutes from its July meeting, where rates were left on hold. Short-term interest rate markets do not price in the next UK rate rise until late 2012 .Dovish minutes and any hint of support for further monetary easing from more members in the MPC could undermine the pound, analysts say.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.13450
Sterling punched a one-month high against the euro on Friday as investors cut positions in the single currency ahead of European bank stress test results, with fears the euro zone debt crisis may spread still hampering sentiment.A lack of UK data releases or news flow left focus squarely on the euro zone. The results of Europe-wide stress tests on 90 banks are due at 1600 GMT and could force some banks to seek state aid.Yield spreads of Italian and Spanish bonds over German benchmarks widened again on Friday, while Bund futures traded at session highs as riskier assets remained under pressure.Minutes from the BoE's decision to leave interest rates on hold at its policy meeting this month are due for release next Wednesday. Softer UK inflation figures this week added to expectations that rates would stay on hold well into 2012 .Analysts said the big market mover looming on the horizon for sterling would be the release of preliminary second-quarter GDP data due at the end of July. Early forecasts point to a sluggish reading of around 0.5 percent growth.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling punched a one-month high against the euro on Friday as investors cut positions in the single currency ahead of European bank stress test results, with fears the euro zone debt crisis may spread still hampering sentiment.A lack of UK data releases or news flow left focus squarely on the euro zone. The results of Europe-wide stress tests on 90 banks are due at 1600 GMT and could force some banks to seek state aid.Yield spreads of Italian and Spanish bonds over German benchmarks widened again on Friday, while Bund futures traded at session highs as riskier assets remained under pressure.Minutes from the BoE's decision to leave interest rates on hold at its policy meeting this month are due for release next Wednesday. Softer UK inflation figures this week added to expectations that rates would stay on hold well into 2012 .Analysts said the big market mover looming on the horizon for sterling would be the release of preliminary second-quarter GDP data due at the end of July. Early forecasts point to a sluggish reading of around 0.5 percent growth.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.13450
Sterling dipped on Thursday as sentiment towards the currency soured on concerns about the fragile economy, high UK debt levels and the prospect of interest rates staying on hold for a prolonged period.Data on Wednesday showed a sharp rise in the number of Britons claiming unemployment benefit, adding to concerns that stale growth prospects may prompt more Bank of England policymakers to call for additional policy easing.There are major concerns about high debt levels, the hit to the economy from harsh austerity measures and UK exports failing to benefit significantly from a weak currency would keep sterling weakThe euro was up 0.3 percent at 88.16 pence, staying above a low around 87.49 pence hit earlier this week when the single currency came under broad pressure on concerns the euro zone debt crisis is spreading.Markets expect the BoE to keep interest rates on hold until well into the second half of 2012. In contrast the European Central Bank has raised rates twice this year, leaving euro zone rates at 1.5 percent, three times that of the UK.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling dipped on Thursday as sentiment towards the currency soured on concerns about the fragile economy, high UK debt levels and the prospect of interest rates staying on hold for a prolonged period.Data on Wednesday showed a sharp rise in the number of Britons claiming unemployment benefit, adding to concerns that stale growth prospects may prompt more Bank of England policymakers to call for additional policy easing.There are major concerns about high debt levels, the hit to the economy from harsh austerity measures and UK exports failing to benefit significantly from a weak currency would keep sterling weakThe euro was up 0.3 percent at 88.16 pence, staying above a low around 87.49 pence hit earlier this week when the single currency came under broad pressure on concerns the euro zone debt crisis is spreading.Markets expect the BoE to keep interest rates on hold until well into the second half of 2012. In contrast the European Central Bank has raised rates twice this year, leaving euro zone rates at 1.5 percent, three times that of the UK.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.1340
Sterling dipped on Wednesday as data showed a sharp rise in the number of Britons claiming unemployment benefit, adding to worries over the UK economy and concerns that the pound would likely be dogged by a prolonged period of risk aversion.
The number of Britons claiming unemployment benefit saw its biggest jump in two years last month, taking the total to the highest since March 2010 and giving the Bank of England further scope to keep interest rates at record lows.
However, as in past months, the broader ILO measure of unemployment fell, and the total number of people employed reached its highest in more than two years.
Fears that the euro zone's debt crisis was spreading to Italy and Spain rocked the euro on Tuesday. But softer than expected UK inflation data added pressure on the pound.
The single currency was able to recover broadly on Wednesday but its outlook remained fragile, and that would likely continue to undermine sterling, analysts said.
Softer than expected UK inflation data on Tuesday was largely due to retail discounting, as major outlets lowered prices in an attempt to counter falling consumer demand. Markets expect the BoE to keep interest rates on hold until the second half of 2012.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling dipped on Wednesday as data showed a sharp rise in the number of Britons claiming unemployment benefit, adding to worries over the UK economy and concerns that the pound would likely be dogged by a prolonged period of risk aversion.
The number of Britons claiming unemployment benefit saw its biggest jump in two years last month, taking the total to the highest since March 2010 and giving the Bank of England further scope to keep interest rates at record lows.
However, as in past months, the broader ILO measure of unemployment fell, and the total number of people employed reached its highest in more than two years.
Fears that the euro zone's debt crisis was spreading to Italy and Spain rocked the euro on Tuesday. But softer than expected UK inflation data added pressure on the pound.
The single currency was able to recover broadly on Wednesday but its outlook remained fragile, and that would likely continue to undermine sterling, analysts said.
Softer than expected UK inflation data on Tuesday was largely due to retail discounting, as major outlets lowered prices in an attempt to counter falling consumer demand. Markets expect the BoE to keep interest rates on hold until the second half of 2012.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
GBP-EUR 1.1350
Sterling was steady as concerns the euro zone debt crisis is spreading to Italy prompted investors to buy safe haven currencies, although losses may be checked by elevated UK inflation data due later.
Economists expect UK consumer price data to show that the annual inflation rate remains at a the two-and-a half year high of 4.5 percent, as rising food prices balance a dip in fuel costs.
Still, the overall outlook for sterling remained bearish given expectations the Bank of England will hold off with any rise in interest rates for months to come and worries about euro zone debt and a global slowdown. That drives investors to seek safe-haven currencies like the yen, the Swiss franc and the U.S. dollar.
She added that a dovish Monetary Policy Committee meant that even if CPI beat expectations, it would not alter expectations that the BOE would remain in hold.
Inflation is widely expected to rise above five percent later this year after utility companies announced hefty price hikes for gas and electricity.
UK trade balance data is also due and economists expect a largely stable goods trade deficit as the improvement seen earlier this year tails off. Recent business surveys have indicated that demand for British products abroad is softening.
Analysts said sterling would be pulled around by moves in the euro against the dollar and developments in the euro zone debt crisis.
Euro zone finance ministers on Monday promised cheaper loans, longer maturities and a more flexible rescue fund to help Greece in a bid to stop financial contagion engulfing Italy and Spain.
But the promises failed to convince financial markets which looked set for a second turbulent day as Italian, Spanish and peripheral bond yield spreads over German Bunds continued to widen. .
The single currency has been unable to maintain gains above 90 pence hit earlier this month as investors shifted their focus from favourable interest rate differentials to the euro zone's debt problems.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com
Sterling was steady as concerns the euro zone debt crisis is spreading to Italy prompted investors to buy safe haven currencies, although losses may be checked by elevated UK inflation data due later.
Economists expect UK consumer price data to show that the annual inflation rate remains at a the two-and-a half year high of 4.5 percent, as rising food prices balance a dip in fuel costs.
Still, the overall outlook for sterling remained bearish given expectations the Bank of England will hold off with any rise in interest rates for months to come and worries about euro zone debt and a global slowdown. That drives investors to seek safe-haven currencies like the yen, the Swiss franc and the U.S. dollar.
She added that a dovish Monetary Policy Committee meant that even if CPI beat expectations, it would not alter expectations that the BOE would remain in hold.
Inflation is widely expected to rise above five percent later this year after utility companies announced hefty price hikes for gas and electricity.
UK trade balance data is also due and economists expect a largely stable goods trade deficit as the improvement seen earlier this year tails off. Recent business surveys have indicated that demand for British products abroad is softening.
Analysts said sterling would be pulled around by moves in the euro against the dollar and developments in the euro zone debt crisis.
Euro zone finance ministers on Monday promised cheaper loans, longer maturities and a more flexible rescue fund to help Greece in a bid to stop financial contagion engulfing Italy and Spain.
But the promises failed to convince financial markets which looked set for a second turbulent day as Italian, Spanish and peripheral bond yield spreads over German Bunds continued to widen. .
The single currency has been unable to maintain gains above 90 pence hit earlier this month as investors shifted their focus from favourable interest rate differentials to the euro zone's debt problems.
Dan Waterman
Excel Currencies
0044 1322 221 121
dan.waterman@excelcurrencies.com