USD/GBP Rate & Comments for 1st September 2010

USD/GBP – 1.540

Sterling fell across the board on Tuesday as concerns over the global economy sent jitters through financial markets. Sterling dropped to a 5 week low of $1.5327/£1 – breaking through the 200 day ‘moving average’ which means there is likely to be further downward movement. Sterling also hit the lowest level against the Swiss franc since January 2009 and fell significantly against the Japanese yen. The Swiss franc, US dollar and Japanese yen are all ‘safe haven’ currencies and the extent of the demand for these safer holdings shows the level of poor sentiment that is prevalent in the global economy. Despite data showing that UK mortgage approvals increased and consumer credit improved last month, there was a clear feeling yesterday that the best of the UK data has already been seen and it is now a ‘high risk’ currency to invest in. In terms of data released today, there is manufacturing data which is expected to show a mild decline. Call in now to ensure you do not buy when the market has fallen further.

In the USA, yesterday saw poorer than expected purchasing manager data with the Chicago PMI figure showing a decline from 62.3 to 56.7. The minutes of the FOMC interest rate meeting were also published yesterday which did not show anything unexpected. The attention now shifts to the ISM index – another measure of purchasing managers’ sentiment towards the economy. This is expected to show a decline, and the ADP non-farm payroll figure is expected to show a much more modest 20,000 increase in monthly private employment. Call in now to ensure you don’t buy at a poor time.

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USD/GBP Rate & Comments for 27th August 2010 USD/GBP – 1.552 Sterling benefitted from improved risk sentiment as gains in stock markets gave investors the confidence to seek higher returns elsewhere. Sterling reached $1.5545/£1 against the US dollar as the FTSE 100 gained 1% through the day. Today sees the release of GDP data in  Continue Reading…

USD/GBP Rate & Comments for 26th August 2010 USD/GBP – 1.553 Sterling had a fairly quiet day yesterday and remains range bound against the euro and US dollar. With trading volumes still low due to the holiday season any negative surprises could hit confidence in sterling and lead to larger movements than normal. Today sees  Continue Reading…

USD/GBP Rate & Comments for 25th August 2010 USD/GBP – 1.544 Yesterday sterling fell to a one month low against the US dollar and ended four days of gains against the euro over fears of a double-dip recession. Martin Weale, a Bank of England Official stated in the Times, “The UK faced a significant risk  Continue Reading…