GBP/USD Rate & Comments for 28th September 2012
GBP/USD – 1.6250
Sterling performed fairly well this week rising to a 3 week high against the euro whilst staying fairly range bound against the US dollar as shifts in risk sentiment due to developments in Europe drove the market. The main data out of the UK this week was the final GDP figures for the second quarter which was revised up to -0.4% from -0.5% providing some relief albeit the figure still confirms that the UK remains in recession. More positive data was released showing that the number of new mortgage approvals was increasing by more than anticipated whilst the Confederation of British Industry (CBI) revealed that the volume of sales had increased by more than expected from last month. There is very little data out of the UK today and the key focus will remain Europe as the markets attempt to digest the Spanish budget and second guess when and if Spain will request for a full sovereign bailout. The potential for a lot of volatility remains so please call in now for the latest news and rates.
The US dollar started poorly this week as risk appetite was the main driver in the market. As risk sentiment shifted the dollar begin to strengthen as investors sought safer havens for their money. Despite consumer confidence showing a more upbeat tone than markets expected this week, the actual data released painted a very different picture. Final GDP figures in the US were revised downwards revealing weaker growth of 1.3% compared to the 1.7% that was previously reported, a sting of poor housing data was released and the change in the value of new goods orders with manufactures showed a sharp contraction. More consumer confidence figures will be released today alongside data showing the change in personal spending, but, shifts in risk sentiment due to any news from Europe is likely to cause much greater price action. To get the latest news please call in.