Good morning. The pound has hit a 5 month high against the US Dollar yesterday, but a stronger single currency means that pound to Euro rates have retreated back well below the €1.20 level. At 08:30am rates are as follows:
Pound gains against US Dollar
- GBP/EUR 1.1917
- GBP/USD 1.5481
- GBP/CAD 1.5946
- GBP/AUD 1.7151
- GBP/NZD 2.1046
- GBP/CHF 1.6313
- GBP/ZAR 11.353
- GBP/JPY 134.86
- GBP/NOK 9.534
- EUR/USD 1.2986
After last weeks stress tests and the better than expected GDP data, markets have more confidence investing in riskier currencies such as Sterling. The pound has since pushed higher against the US Dollar, and we're now seeing the best buying levels in 5 months for those needing to purchase US Dollars.
Pound falls against Euro
The stress tests seem, for the moment, to have allayed concerns over the EU economy. A bullish set of data late last week showed the European economy may be doing much better than previously thought. The news has helped to push the Euro higher, making it more expensive to purchase.
Some analysts say that the tests were not robust enough, so if we were to see poor EU data this week, then we could see the Euro weaken again.
Retail Sales from Germany were released at 7am this morning. The changes are widely followed as an indicator of consumer spending, and so are a barometer of consumer confidence. A higher reading than expected was released, and the Euro has strengthened a bit further this morning.
In the USA at 3pm, there is a measure of Consumer Confidence. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn, so watch these figures closely if you need to buy or sell USD.
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