USD/GBP Rate & Comments for 23rd April 2010

USD/GBP – 1.538

Sterling hit a 12 week high of 1.1583/ £1 against the euro yesterday and has briefly broken through the 1.16/ £1 this morning – buoyed by better than expected data on UK public finances and euro weakness related to the Greek debt crisis. UK public sector borrowing was better than expected, despite the fact that the UK’s deficit is the highest since World War II. Retail sales data came in slightly worse than expected at 0.4% on an expectation of 0.6%, but had little effect on the pound. With political uncertainty still rife in the run up to the May 6th election, all eyes were on last night’s second prime ministerial debate. The debate was a lot more evenly matched and initial polls had David Cameron as the winner of the debate. Out today we have the first estimate of GDP data, which is expected to show that the UK economy grew at a rate of 0.4% in the 1st Quarter. This week demonstrates why it is so important to be registered with a currency specialist. We saw the pound jump up by half a cent over the course of 15 minutes before dropping back down shortly after. Registered clients were able to take advantage straight away rather than trying to set up an account, which by the time it was open was too late to get the price they wanted. Call in today for a price and to talk to a currency specialist about how to avoid losing out on favourable rates.

In the USA, the number of people claiming unemployment benefits dropped by 24,000 – about 4,000 short of what was expected. This saw the US dollar strengthen marginally against the pound, finishing the day 0.2% up at $1.5370/ £1. Following the events in the Euro zone the US dollar strengthened 0.6% and finished the day close to the $1.33/ £1 mark. Out today, there is data on durable goods orders and new home sales. Call in now to avoid the market adversely moving against you. Have a fantastic weekend in the sunshine (hopefully…)

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