The Pound took a bit of a currency-kicking yesterday as a result of unexpectedly disappointing UK industrial production and manufacturing reports.
The Pound Sterling to Euro Exchange Rate was in the region of $1.4886 as of 12:25 GMT
1 US Dollar is currently worth 0.6717 pence
An unforeseen stagnation in industrial production and a surprising 0.8 per cent slump in manufacturing production pushed the Pound to a three-year low against the US Dollar and saw the British currency lose ground against the majority of its other most traded rivals.
The GBP/USD pairing hit a high of 1.4922
However, with economists looking ahead to next week’s UK inflation data and with industry experts speculating that the Sterling selloff had been excessive the Pound strengthened modestly against the US Dollar.
Although the Pound has retreated from highs recorded towards the beginning of the European session, the currency is digging its heels in before today’s big economic news – the release of minutes from the latest Federal Open Market Committee policy meeting and Fed Chairman Ben Bernanke’s announcement
Strategist Kit Juckes has offered the following outlook for the GBP/USD pairing: ‘To re-balance the UK economy away from financial services requires rebuilding the share of investment in the UK’s GDP, rebuilding lending to small and medium-sized businesses which are starved of funds by de-leveraging banks. For now, what we get is an on-going downtrend in GBP/USD towards our year-end target of 1.42, and further reason for Mr Carney [Bank of England Governor] to be accommodative.’
The GBP/EUR pairing also remains under pressure.
For the rest of the week Pound movement is most likely to result from global economic developments due to an absence of UK economic news.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.4890 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1614 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6170 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8953 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6717 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8608 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6183 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5274 <
(As of 12:25 GMT)
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