US$/GBP – 1.6203

Sterling slipped on Friday after stronger than expected GDP growth in Europe reinforced the view that interest rates would rise at a faster rate in the euro zone than in the UK. Sterling also slipped against the US dollar, falling below the $1.62/ £1 mark. Stronger than expected GDP growth in France and Germany sets the UK up well in the long term, as you would expect growing economies to see demand for UK exports increase. It is a quiet day for data today, but a fairly busy week ahead. There are inflation figures released tomorrow ahead of the Bank of England’s minutes on Wednesday. These are both key pieces of data with reference to the likelihood of a UK interest rate hike, so ensure you speak to one of the team to avoid losing out. 

In the USA, the US dollar strengthened towards the end of last week as a sharp sell off in commodities hurt risk appetite and saw investors flock to the ‘safer’ US dollar. At the start of the coming week, the US dollar is likely to remain out of the limelight with the focus on the European finance minister meeting. However, Wednesday sees the Federal Reserve’s policy meeting minutes, which are likely to bring the focus back to monetary policy in the USA. Call in now for a live exchange rate. 

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USD/GBP Rate & Comments for 2nd September 2010 USD/GBP – 1.540 Sterling hit a 3 week low against the euro yesterday after UK purchasing manager data came in sharply lower than was expected. The survey asks business purchasing managers whether they have bought more or less this month, and is a key indicator of business  Continue Reading…

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  Continue Reading…

USD/GBP Rate & Comments for 31st August 2010 USD/GBP – 1.542 Sterling’s movement last week was dictated by risk sentiment as sterling suffered on increased risk aversion at the start of the week but benefitted towards the end of the week due to gains in global stock markets. UK quarterly growth was revised upwards which  Continue Reading…

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…