Wednesday 24th August 2011
Good morning. Sterling again remained stable against the Euro and US Dollar yesterday, with little movement in exchange rates. There are still warnings though that its gains are expected to be limited due to concerns about the UK's faltering economic recovery. At 08:30am this morning rates are as follows:
• GBP/EUR 1.1436
• GBP/USD 1.6486
• GBP/AUD 1.5747
• GBP/NZD 1.9903
• GBP/CHF 1.3059
• GBP/CAD 1.6311
• GBP/ZAR 11.870
• GBP/JPY 126.38
• GBP/DKK 8.5195
• GBP/NOK 8.9578
• EUR/USD 1.4408
Sterling remains stable, for now...
The Pound remained range bound against the Euro and Dollar yesterday, as there were no real surprising data releases. Sterling also drew support from a recovery in risk appetite after better than expected China manufacturing data and German factory activity numbers eased global growth worries and helped stocks.
Sterling has benefited recently due to concern about EU debt and the growth issues in the USA. Other than that, the fact remains that the UK economy is facing stagnant growth, and as soon as we get any weaker UK data it's likely Sterling could dip again. Weak economic figures would increase the chance of more Quantitative Easing from the BoE, and that would likely cause the Pound to fall.
With little data from the UK today, we expect rates again to remain range bound today, while we wait for GDP figures from across the globe on Thursday and Friday.
Today’s UK data is Nationwide Housing Prices. In the EU we have Industrial New Orders, and Business Climate assessment figures from Germany. In the USA, we have Mortgage Approvals. New Zealand releases Retail Sales.
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