USD/GBP Rate & Comments for 29th October 2010
US$/GBP – 1.591
Sterling had a poor start to the week on concerns over further Quantitative Easing that were hanging over the pound following last week’s relatively negative Bank of England minutes. This saw sterling hit a 7 month low of 1.1184/£1 against the euro on Monday. However, Tuesday’s GDP figures of 0.8% beat expectations and the UK credit rating outlook upgraded to “stable” from “negative” following spending review. Sterling hit highs of 1.1486/£1 and $1.5970/£1 on Thursday as a result of more positive sentiment towards the UK. This came despite figures showing that house prices fell by more than expected in the previous month and disappointing retail sales figures. Overall though, it was a good week for sterling as fears over further Quantitative Easing subsided. Call in now to speak to one of the traders about taking advantage of better exchange rates.
In the USA, the US dollar fell to a 10 week low against sterling this week despite a slight recovery midweek. The main issue for the US dollar has been the issue of further Quantitative Easing which is widely expected to be implemented next week. Many investors have been taking out extreme ‘short’ positions against the US dollar. This has helped other currencies hit highs and despite last week’s G20 summit discussions over “currency wars”, the US dollar is still hovering around 15 year lows against Japanese yen. This is the key issue this week, so ensure you speak to a trader to avoid any unexpected volatility unduly impacting your payments.
Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
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