The imminent arrival of the future heir of the British throne might be the day’s biggest bit of UK news, but another interesting development has helped the Pound strengthen as the European session gets underway.
The Pound Sterling to US Dollar Exchange Rate was in the region of $1.5282 as of 10:00 GMT
1 US Dollar is currently worth 0.6543 pence
Comments issued by Prime Minister David Cameron regarding the possibility of taxes being cut saw Sterling climb to an over two-week high against the US Dollar and strengthen against the Euro.
During a televised broadcast for the BBC Cameron asserted: ‘What [Chancellor George Osborne] said, and what he’s absolutely right about, is that our plans […] don’t include any plans for tax rises. […] As we start to see the economy healing… I want to give people back some of their hard earned money and try to reduce their taxes. That is what drives me as a Conservative. I think your economy does better if you say to people, “You’ve worked hard, you’ve done the right thing, here is some of your own money back in a tax reduction.” ’
The GBP/USD exchange rate hit a low of 1.5256 pence per Dollar
However, some industry experts have responded by stating that David Cameron should be providing a definite timeline for tax reduction, and not just vague intimations.
As Matthew Sinclair, of the TaxPayers’ Alliance, was quoted as saying: ‘David Cameron is right to recognise the need to cut taxes on hard-pressed families but he should act now, not just make promises for the distant future. Stagnant wages and rising prices mean it’s vital that politicians ease the burden on taxpayers.’ Sinclair added: ‘Tax cuts alone are not enough though. It is time the Government abandoned its barmy policies that drive up the cost of living.’
The Pound’s advance against the US Dollar was aided by the falling odds of the Federal Reserve tapering quantitative easing, which saw the ‘Greenback’ broadly weaken.
UK news to watch out for this week includes BBA Loans for House Purchase figures and UK second quarter GDP data.
Economists have forecast that UK GDP expanded by 0.6 per cent quarter-on-quarter and 1.4 per cent year-on-year. A better than expected result could see the Pound extend gains.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5282 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1616 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6615 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9298 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6543 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8611 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6022 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5185 >
(As of 10:00 GMT)
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