USD/GBP Rate & Comments for 17th August 2010
USD/GBP – 1.565
Sterling reclaimed some of the ground lost against the US dollar last week, rising 0.4% yesterday to hit $1.5665/£1 after risk sentiment improved in trading yesterday. Against the euro, sterling slipped after house price data showed that the housing market had faltered in the last month. Data from Rightmove showed that prices slipped by 1.7% against an expected gain of 0.6%. This saw sterling drop by 0.4% against the euro as additional positive data added to the single currency. Aside from the house price data, it was a relatively quiet day for sterling. However, there is key inflation data out today and retail sales data released later in the week with the most important release being Wednesday’s Bank of England minutes likely to cause the most market movement. What most investors are looking for is whether any of the Monetary Policy Committee members joined Andrew Sentance in voting for an interest rate rise, as he did last month. Call in and speak to a trader to ensure you protect yourself from the markets moving against you.
In the USA, the boost in risk appetite in the Euro zone saw the US dollar drop off against sterling and the euro. Global stock markets recovered as investors looked to pick up relatively cheap stocks and shares after last week’s risk aversion devalued stock markets. Elsewhere, data showed that there was a net overall outflow of capital out of the USA in June. One of the major reasons was that the Chinese government has started buying Japanese government over the US equivalent as it feels that Japanese bonds are a lot less risky than their US counterparts. This general lack of interest for US investments is not great news for the US dollar. Call in now to make sure you take advantage.
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