The Pound has declined for a fourth-day against the Euro after an improvement in German business confidence and speculation and rising speculation that the Bank of England will choose to boost its stimulus programme sapped demand for Sterling.
The British currency was weighed down after Bank of England policy maker Paul Fisher told journalists that the UK economy is likely to remain sluggish or years to come.
Mr Fisher said; “the economic data have been disappointing for some time … Trend growth should be more like 0.6% 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. There had been no such weak period in the UK since quarterly GDP data were first published in 1955.”
So far this week the Pound has taken a bit of a tumble as it fell to its lowest level in three-months against the Euro s data out of the UK has been weak. British retail sales fell in April and inflation slowed more than economists had forecast.
“We’ve had better data on the euro side with the German Ifo and euro-sterling is firmer,” said Steve Barrow, head of Group-of-10 research at Standard Bank Plc in London. “The U.K. data flow has really damaged sterling this week, maybe a little more than expected.”
The Pound looks set to remain weak next week due to a lack of key important data releases and the bank holiday weekend.
Current Pound Sterling (GBP) Exchange Rates:
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5122
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1662
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.5616
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8666
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6627
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8584
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6400
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5353
(As of 12:30pm GMT)
Comments are closed.