USD/GBP Rate & Comments for 10th September 2010

USD/GBP - 1.544

Sterling fell against the US dollar yesterday after the UK reported a record goods trade deficit and on speculation that the Bank of England would further stimulate the economy with additional Quantitative Easing. Sterling dipped as figures showed that the UK’s trade deficit unexpectedly jumped to a record £8.667bn. Whilst this entails imports outpacing exports – suggesting increased domestic demand – analysts are sceptical that this will help boost UK growth as the pending spending cuts take full effect over the next few years. The Bank of England held their interest rate meeting yesterday and kept interest rates on hold at 0.5% as expected, but many commentators expect further money to be pumped into the economy at a later stage as the ‘fiscal austerity’ measures cut growth and output. The main UK data out today is wholesale price inflation, which is expected to show a 0.2% rise. Get in touch now for a live exchange rate and to ensure you are protected.

In the USA, the US dollar strengthened against sterling to hit a low of $1.5396/£1 after the concerns hit sterling over potential further emergency funding being pumped into the UK economy. This saw the US dollar break through the 200 day moving average. In addition, the US trade deficit dropped and unemployment claims fell which added a boost to sentiment towards the US recovery. There is no real data out today so call in now for a live price.


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