The US Dollar reached a three-week high against the Pound Sterling after a report showed that disposable income in the UK fell to its lowest level since 1987 and year on year GDP was worse than expected.
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6523
The disappointing data casts doubt over the strength of the UK’s economic recovery and caused investors to seek sanctuary in the safe haven ‘Greenback’. Year on year UK GDP fell from a 0.6% expansion to 0.3%. Disposable household income fell 1.7% according to the UK Office for National Statistics.
Against the Euro the ‘Greenback’ weakened after data out of the Eurozone showed an improving picture for the struggling economy. Increasing confidence in the European economy beat forecasts helping to lessen the appetite for safe haven assets.
Jobless claims in the US fell by 9,000 to 346,000 in the week ending June 22nd and consumer spending in the country rebounded. According to the Commerce Department, consumer spending increased by 0.3% last month after a revised drop of 0.3% in April. Consumer spending in April was previously thought to have declined by 0.2%.
Continuing jobless claims in the week ended June 15 fell to 2.965 million. Analysts had expected continuing claims to decline to 2.950 million from last week’s revised figure of 2.966 million.
The four-week moving average was 345,750, a decline of 2,750 from the previous week’s revised average of 348,500.
The continuously improving data for the US economy means that the Fed is more likely to taper its $85 billion monetary easing programme later in the year.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6523
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7672
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0740
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.1286
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0439
(Correct as of 14:40 pm GMT)
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