Currency Rates
US$/GBP – 1.529
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Sterling had a poor day yesterday on weak data and growing concerns that the Bank of England could expand Quantitative Easing further. In addition, poor US unemployment data caused investors to move to the safe haven dollar on risk aversion. The pound dropped to a 9 month low against the US dollar and a 6 week low against the euro. Weaker than expected data showed a 5.8% drop in business investment in the 4th Quarter and added to the negative sentiment created this week by key members of the Bank of England who alluded to pumping more money into the economy. This dented hopes of an upgrade to the UK’s updated 4th Quarter GDP figures which are released this morning. There has been talk of an upgrade from 0.1% to 0.2% growth, however following yesterday’s poor data there is as much of a possibility that this figure will show that the economy shrank. There is growing concern that the UK’s recovery is faltering. A survey of house prices this morning showed that prices dropped by 1% from last month. This week has seen concerns grow over the state of the UK’s recovery and sterling has dropped considerably. There is a high risk of volatility today which could see the price of sterling move either way. Get in touch now to avoid losing out.
In the USA, the number of new claims for unemployment insurance rose by 30,000 more than expected sparking concerns over global recovery. This caused the US dollar to strengthen further against sterling. With recent data also disappointing, investors are concerned that the recovery is very fragile. US 4th Quarter GDP figures are expected to be revised down slightly to 5.5%. Many are expecting growth to slow in the US in the first 3 months of 2010. Get in touch now to avoid sterling dropping further against the US dollar.
Call 0808 163 0102 or +44 (0) 207 898 0541 from outside the UKor fill out our quote form: http://www.smartcurrencyexchange.com/quote.aspx
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