With this week’s UK services PMI and industrial production/manufacturing figures topping forecasts and painting a bright picture of the UK’s continuing economic recovery, the Pound has enjoyed a bullish relationship with several of its most traded rivals.
The Pound Sterling to US Dollar Exchange Rate was in the region of 1.6061 as of 13:00 GMT.
Overnight Sterling consolidated recent gains against the US Dollar but slid slightly against the Euro as investors speculated that the common currency’s decline had been too rapid.
The looming Bank of England and European Central Bank rate decisions also weighed on the GBP/EUR pairing.
After the BoE opted to leave rates unaltered and continue with an asset purchase target of 375 billion Pounds, as expected by economists, the Pound fluctuated against a pressured ‘Greenback’ and edged away from a five week high against the Euro.
The Monetary Policy Committee warned that Sterling’s recent appreciation against the US Dollar could derail the UK’s strengthening economic recovery, and the Pound’s appeal declined as a result.
While the BoE isn’t scheduled to release its revised economic projections until next week, according to economist Ross Walker; ‘It’s going to be a prolonged period where there’s no change and no great sense of urgency. The risks continue to diminish, but they’re not totally negligible, so the MPC is still able to point to those as a factor for maintaining the current accommodative policy settings.’
1 US Dollar is currently worth 0.6224 pence
However, the European Central Bank’s own surprising rate decision led to a GBP/EUR spike later in the European session, and Sterling was able to push above 1.20 per Euro.
The Pound could also recover losses against the US Dollar if US GDP data confirms that US economic growth softened in the third quarter. Economists have forecast that the world’s largest economy grew by 2.0 per cent in the third quarter following expansion of 2.50 per cent in the second. A surprising result is likely to lead to GBP/USD volatility.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6061 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.2003 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6935 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9194 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6224 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8328 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5911 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5208 <
(As of 13:00 GMT)
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