At the opening of the European session the Pound was trading close to a month-high against the Euro following the publication of UK housing data. As trade progressed Sterling extended gains against the common currency and recouped losses against the US Dollar as domestic inflation data was released.
The Pound Sterling to US Dollar Exchange Rate was in the region of 1.5456 as of 10:05 GMT
1 US Dollar is currently worth 0.6468 pence
In another positive sign for the UK housing market, a report published by the Royal Institution of Chartered Surveyors showed that an index of UK house prices stormed to 36 in July, up from 21 in June and the strongest level for almost seven-years.
Meanwhile, separate data showed that British consumer inflation softened modestly last month, largely as a result of reduced clothing and airfare costs.
The GBP/USD exchange rate hit a high of 1.5482
As expected by economists, UK inflation eased to 2.8 per cent last month from a 14-month high of 2.9 per cent in June.
Although the Bank of England’s inflation rate target is 2 per cent the central bank has acknowledged that it expects consumer-price growth to fluctuate around the current level for several months to come.
As IHS Global Insight economist Howard Archer observed, ‘Consumer-price inflation may yet touch 3 per cent in the near term, but it should start heading gradually down toward the end of the year.’
Archer added: ‘Much will clearly depend on oil-price developments.’
Meanwhile, separate figures showed that annual input-price inflation climbed to 5 per cent as a result of oil price support.
However, gains against the Euro are likely to be short lived as the common currency was boosted by a better-than-anticipated gain in the ZEW German economic sentiment and current situation surveys. An index of German economic sentiment leapt to 42.0 in August, smashing economists’ forecasts for an advance to 39.9, while a gauge of current situation advanced to 18.3 from 10.6.
With US retail sales data being today’s most influential news, additional GBP/USD movement is likely.
Current Pound Sterling (GBP) Exchange Rates:
< Down > Up
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5456 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1632 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6962 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9343 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6468 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8589 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5904 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5168 <
(As of 10:05 GMT)
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