USD/GBP Rate & Comments for 1st June 2010

USD/GBP - 1.447

Sterling had a good week last week gaining ground on greater risk appetite in the markets against the US$ and the . Following the bank holiday here in the UK on Monday we have opened up with sterling slightly up on the euro and slightly down on the US$. This week we have UK purchasing managers indices for both manufacturing and services. Both are expected to be similar to last months figures which if met would show the economy continuing to expand. We also have some housing data for mortgages and house prices. It will be interesting to see how the influence if any of the election in early May has on these figures. But we continue to be in very volatile times with exchange rates moving very quickly. That is why it is so important to get in touch now if you have an upcoming requirement.

The US$ has been the main beneficiary over the last few months given the problems in the euro zone and the UK and its safe haven status. But having said that the US has just revised its growth figures for the first quarter from 3.2% to 3.0% whereas the markets were expecting it to be increased to 3.4% which makes it clear that nowhere is going to have a smooth run out of recession. Later this week we have unemployment figures and purchasing manager’s indices for both manufacturing and services. So a busy week for economic data and as such expect volatility in the exchange rates.

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