USD/GBP Rate & Comments for 15th July 2010

USD/GBP - 1.531

Sterling hit a 2 month high against the US dollar yesterday as UK jobs data came in better than expected. The number of people claiming unemployment fell by more than expected, showing a fall of 20,800 people against an expectation of 20,0000. In addition, the rate of unemployment fell from 7.9% to 7.8% driven by a record boost in part time employment. The data was the catalyst to see sterling jump by nearly 1% to nearly $1.53/ £1 - the highest rate in 2 months. Concerns over the banking sector held sterling back, as the FTSE 100 traded down 0.4%. Against the euro, the pound gained marginally to trade back above the 1.20/ £1 level. However, movement between sterling and the euro has been fairly limited this week with most off the volatility coming against the US dollar. In terms of data, there is little out today in the UK so get in touch to ensure you take advantage of the strong US dollar price.

In the USA, monthly retail sales figures improved, but by a lot less than was expected. Sales fell by 0.5%, but were expected to decline by 0.2%. Import prices also declined by 1.3% - all of which added to the US dollar’s decline against the pound. Out later today, producer prices are expected to decline alongside CPI inflation data which is expected to show a similar decline as inflationary pressures remain low. There is an expectation that the US labour market figures out today will continue to show a gradual improvement. Call in now for a live exchange rate.

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