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Today’s Exchange Rate News: Sterling continues to trade lower against its major rivals

Bank of England

The Pound Sterling to US Dollar exchange rate was 1.5759 as of 10:15 am

Sterling continues to trade lower against its major rivals today, despite a report showing that UK mortgage approvals rose to an 11 month high in December.

The data, compiled by the Bank of England, revealed that mortgage approvals hit 55,785 in December, 1,774 higher than in November and 285 more than estimated by economists. Net mortgage lending also increased by 1.036 billion pounds, the most for 8 months.

Although these results appear to indicate that the British central bank’s Funding for Lending Scheme could be starting to yield the desired effect new economic concerns restrained the Pound, keeping it close to a five month low against the US Dollar and its weakest level for over a year against the Euro.

In their usual optimistic fashion economists have forecast that this week’s report on UK manufacturing will show that growth in the sector slowed in January.

As one upbeat industry expert put it: ‘There’s some consolidation but Sterling is likely to head lower once again. There are still risks that we see another leg lower, particularly if we see disappointing manufacturing data later this week.’

Economists have predicted that Markit Economics’ gauge of factory activity, released on Friday, will record a drop of 0.4 per cent in January. This will take the figure from 51.4 to 51, and worryingly close to the 50 mark which separates growth from contraction.

News from the US is also of interest to the Pound today. If 4Q GDP figures for the nation, or the Federal Reserve’s policy decisions, fail to live up to expectations Sterling could sneak up on the ‘Greenback’. Conversely, this situation could also trigger risk-aversion in the market place and if investors flock to the safe-haven US Dollar rather than the Japanese Yen the Pound could fall further.

Current GBP Exchange Rates

The Pound Sterling to Euro exchange rate is currently trading at 1.1643         

The Pound Sterling to US Dollar exchange rate is currently trading at 1.5756

The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5092

The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8884                          

The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5795

The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7825

The Pound Sterling to Swiss Franc is currently trading at 1.4484

The Pound Sterling to Japanese Yen exchange rate is currently trading at 143.9000