US$/GBP - 1.5668 

Sterling fell to a four week low against the euro on Thursday as investors became optimistic over progress in Greek debt talks and concerned over UK economic weakness.  UK data from the Confederation of British Industry showed there was a far worse contraction in sales than had been anticipated.  Sterling strengthened against the US dollar, hitting the highest level against the US currency since December 22nd after breaking through $1.57/£1 on stronger. However, poor GDP  figures on Wednesday and the further likelihood of poor UK data are set to limit sterling’s upside against the US dollar over the longer term.

In the USA, the US dollar weakened yesterday and global stock markets gained as markets reacted to optimism over a potential solution to the Greek debt situation. In addition, the announcement earlier in the week that the Federal Reserve would keep interest rates on hold for up to 2 years helped drive risk appetite and deliver the first signs of a resurgent carry-trade. Out later today is US GDP data so call in now for a live exchange rate