USD/GBP Rate & Comments for 4th June 2010

USD/GBP – 1.464

Sterling fell against the US dollar yesterday after mixed data failed to impress the markets. The pound initially strengthened as a survey showed a rise in UK house prices, but then suffered as services sector growth came in worse than expected. The pound fell to a low of $1.4588/ £1 on the news off a high of $1.4740/ £1. Many analysts cited that any sterling demand following the unwinding of protective positions following the collapse of Prudential’s bid for the Asian arm of AIG had now been completed, and as such, this contributed to the pound’s decline. However, sterling performed strongly against the euro and hit 1.2008/ £1 in late trading, as concerns over the outlook for the Euro zone economy outweighed the perceived risk of investing in the UK. Many analysts expect the pound to strengthen to 1.2239/ £1 – a key technical level representing the mid point between the 2007 highs and 2008 lows. Out later today we have further house price data. Get in touch now for a price.

In the USA, there was a raft of relatively mixed data out yesterday. Non-farm employment showed that the US labour market grew by 55,000 jobs last month which was worse than expected. In addition, unemployment claims stayed the same, and productivity data showed a mild decline. Out today there is the ‘main’ measure of unemployment and the Non-farm unemployment rate, which normally see a fair amount of volatility. Ensure you don’t miss out by calling in now for a live exchange rate.

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