You have to keep your eye on the ball in this market and that’s exactly what we’ve been doing here at Currency Solutions of late, as the pound jumped, the dollar ducked and the euro had a bit of a sulk having been let down by Greece, whose FTD (fat terrifying debts) could prove to be contagious and extremely unattractive to punters on the FX dance floor.  

In case you didn’t feel the banks were getting a strong enough kick up the backside, US institutions took one this week after US President Barack Obama decided they’ve been getting too big for their boots of late - undoubtedly very expensive, bonus-funded boots at that. 

"Never again will the American taxpayer be held hostage by banks that are too big to fail” cried the US President, after which the dollar drooped shamefully to end a tepid week of losses against the pound.  

A healthy breakfast of strong UK housing data saw sterling bright and breezy on Monday morning, whilst the sorry state of the euro suggested it can only have had time to grab a less-than-generous helping of stale muesli. This made the dollar appear a lot healthier than it actually was whilst the yen carried as much optimistic morning oomph as one of those impressive yet irritating morning joggers. 

Tuesday delivered the horrifying news that a much-loved British treasure was to be swallowed up by a large American buyer. Goodbye Cadburys, hello Kraft… well known in the UK for their processed, plastic, orange cheese - which is sure to ease the fears of any anxious dairy milk enthusiasts. The outcome? Sterling saw major gains as the euro dropped to a four month low and the dollar followed suit allowing the pound to hit a one month cable high, every cloud… 

The pound’s progress against the euro continued on Wednesday, following chatter that the central bank's quantitative easing would pause next month. Consumer inflation from Tuesday fuelled the fire and excitement filled the air: Then BoE Governor Mervyn King poured water all over the UK inflation spike in his first major speech of the year, possibly branding himself as something of a killjoy... 

Then we hit Thursday, which saw the pound’s fortunes reverse as those pesky investors decided to stay coy before the release of UK public finances data later that day. They may have also remembered the small matter of the countries dismal economic circumstances as well as the financial implications of the impending scapegoat selection process we call a general election.  

So the week left us with mixed signals as to what lies ahead for the majors, as the pound’s gains were capped and the euro and dollar looking fairly unpredictable. If you are hoping to surf the markets like a true pro this week, do get in touch with us for any advice, information or just a very good rate, by calling +44 (0)207 740 0000 or visiting www.currencysolutions.com  

Have a great week.