Sterling slid yesterday following the publication of a report revealing that UK manufacturing orders contracted for a 20th month. The British currency dropped to a 2-week low against its US counterpart despite separate data showing that the UK’s budget deficit narrowed in March, and was little changed this morning prior to the release of UK home-loan and retail sales figures.
The Pound Sterling Exchange Rate was in the region of 1.5281 against the US Dollar as of 11:20 am GMT
After the Bank of England announced its intention to expand and extend its funding for lending scheme (with the particular intention of aiding smaller businesses) the Pound posted modest gains against the US Dollar.
The BoE argued that one of the major issues hindering the UK’s economic recovery is the lack of credit available to small firms.
Chancellor of the Exchequer George Osborne said of the development: ‘This innovative extension will now do even more for small and medium-sized businesses so that they can play their full part in creating new jobs.’
However, some industry experts aren’t convinced that the Funding for Lending Scheme will have much affect while economic conditions remain as they are.
One analyst noted: ‘The FLS is likely to provide a boost when confidence returns to the economy, but confidence is the elusive factor.’
Sterling could experience slight movement in the hours ahead as an index of UK retailers compiled by the Confederation of British Industry unexpectedly dropped to -1 this month from 0 last month, indicating lower sales volume.
Economists had expected the index to rise to 7/8.
In response to the result one CBI representative stated: ‘This may be explained in part by the unseasonal weather we suffered, but there is no doubt that high street conditions are tricky with consumers lacking the confidence to go out and spend, as they still feel the pinch in their pocket.’
Tomorrow we will find out whether the UK did indeed manage to avoid entering an unprecedented triple-dip recession as 1Q GDP figures are released.
Current Pound Sterling (GBP) Exchange Rates
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5281
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1746
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.4848
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8052
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6544
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8514
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6726
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5542
(Correct as if 11:20 GMT)
Comments are closed.