Prior to the release of budget deficit data for the UK the Pound experienced a modest gain vs. its American rival for the first time in a week, briefly achieving 1.5864 US Dollars.
However, after the figures compiled by the Office for National Statistics revealed that the UK’s budget deficit widened in December concerns for nation’s economic outlook also increased and Sterling fell back to its previous level.
The Pound also continued its recent run of declines against the Euro, shedding 0.3 per cent against the broadly strengthening common currency following a better-than-forecast German investor confidence index.
After hitting the near 11 month low of 84.41 pence, as of 11:55 am (London time) the Pound was trading against the Euro at 0.8410 pence.
One currency strategist commented on the present status of the Pound, stating: ‘In the U.K, there is little or no economic growth and moderately high inflation which is never good for a currency. There’s an improvement in general sentiment towards the euro area and we’re starting to see the level of safe-haven flows in the pound tapering off.’
With the Bank of England due to release the minutes of its last meeting tomorrow morning, and UK jobless claims data also on the way, Sterling could experience significant volatility over the course of Wednesday.
Current GBP British Pound Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1885
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5861
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5009
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8845
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5741
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.8256
The Pound Sterling to Swiss Franc is currently trading at 1.4739
The Pound Sterling to Japanese Yen exchange rate is currently trading at 140.6500