25th May 2011
Good morning. Sterling is back up above €1.15 against the Euro this morning, recovering losses yesterday after Moodys threatened to cut the credit rating of some UK banks. At 08:30am this morning rates are as follows:
Pound up against Euro but analysts expect Sterling weakness
- GBP/EUR 1.1513
- GBP/USD 1.6147
- GBP/AUD 1.5410
- GBP/NZD 2.0355
- GBP/CAD 1.5834
- GBP/CHF 1.4201
- GBP/ZAR 11.350
- GBP/JPY 132.21
- GBP/NOK 9.039
- GBP/DKK 8.5842
- EUR/USD 1.4023
The credit agency Moodys recently said it may downgrade the rating of some UK banks and this weakened Sterling yesterday against most currencies. Small Euro gains against the Dollar also helped prop up Sterling.
Analysts say that the general weakness of Sterling vs the Euro mean that the Pound will probably remain vulnerable due to concerns about the banking sector and the fragile UK economic recovery.
Rates to buy Euros are now back to a 2 month high, so those that missed the chance on Monday to buy at these levels has another opportunity today. With weakness in the economy rates could fall back away, and it was only several weeks ago rates were at their worst for over a year.
At 09:30am this morning we see UK GDP figures. This is a measure of economic activity and will show by how much the economy is growing. It's the most important release of the week for Sterling and could well alter rate significantly.
We expect quarterly growth of 0.5%. If it's more than this then Sterling will gain against other currencies. If it's less, then this will show that the recovery is stalling and expect big falls for the Pound.
You can keep up to date throughout the day on our Twitter page. This will have regular rate updates and information on the GDP data in addition to other releases.
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Labels: GBP/EUR 2 month high, GDP Figures