Stable month for Sterling against Euro

The latest HiFX Global Currency Moves Report reveals Sterling remained stable against the Euro in July with less volatility than in June - good news for holiday makers trying to budget for a trip to the Continent.

In contrast, GBP/AUD, GBP/CAD and GBP/NZD continue to be extremely volatile - spelling trouble for Brits looking to travel further flung destinations.

Overall, Sterling held steady against the Euro in July, despite the positive effects of a ten day rally in the FSTE and the news of encouraging house price indices being damningly off set by worse than expected GDP figures for the first quarter of the year. Holiday makers heading to the Continent enjoyed an average exchange rate of €1.16 to the pound. Whilst this is a far cry from the heady €1.52 we were seeing in 2007, this reduced volatility has made planning and sticking to a holiday budget easier.

Across the other side of the Atlantic, GBP/CAD suffered another unstable month and remained the most volatile currency pair in the HiFX table in July.

The knock on effect from volatile equity markets on high yielding currencies, such as the Australian and New Zealand Dollar, after a bleaker than expected US jobs report, meant that both currencies fell against Sterling in July. Both countries currencies also saw movement of over 5% against the pound, pushing them up the volatility table.

Mark Bodega, Director at currency specialists HiFX comments: "Bad news, and worse than expected GDP and employment figures from around the world are continuing to drive volatility in the FX markets and overall, Sterling still looks weak against most other currencies compared to where we were at this point last year. In this environment, it's more important than ever for anyone looking to spend money overseas to ensure that they protect themselves against swings in the market that could adversely affect their future wealth."