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Pound Sterling to US Dollar (GBP/USD) Exchange Rate Strengthens After GDP Estimate

Two pound coin.

Sterling strengthened against the US Dollar and posted a modest advance against the Euro as NIESR released its GDP estimate for May.

The Pound Sterling Exchange Rate was in the region of 1.5620 against the US Dollar as of 16:10 GMT

Although British manufacturing production figures disappointed and the GDP estimate came in at 0.6 per cent, a slow news day in the US and Eurozone has allowed the Pound to climb.

Sterling also continues to benefit from last week’s better-than-expected manufacturing, construction and services PMI figures.

Although the UK economic expansion slowed from the 1 per cent recorded for the three months through April, expansion of 0.6 per cent on the quarter in the three months through May is still considerably better than the 0.3 per cent overall growth posted in the third quarter.

The Pound pushed back above 1.56 as the European session progressed

As Bank of England Executive Director Paul Fisher recently argued in a speech in Cardiff: ‘To focus on whether growth is a bit negative or a bit positive is to use the wrong reference point. Trend growth should be more like 0.6 per cent a quarter and we have only had five quarters of growth at that rate or higher in the 21 quarters since the start of 2008.’

Although NIESR has only forecast growth of 0.9 per cent for 2013, the UK economy is likely to post on trend growth in the second quarter.

Influential UK news to watch out for tomorrow includes UK employment change, jobless claims and unemployment rate figures.

Current Pound Sterling (GBP) Exchange Rates

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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5620 >

The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1747 >

The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6621 >

The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9929 >

The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6416 <

The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8510 <

The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6011 <

The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5013 <

(As of 16:10 GMT)

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