USD/GBP Rate & Comments for 15th September 2010

USD/GBP - 1.546
Sterling performed well against the US dollar yesterday as UK inflation beat expectations and helped eased concerns that the Bank of England would increase their programme of Quantitative Easing. By close of play yesterday, sterling had hit a daily high of $1.5585/£1 against the US dollar as the stubborn inflation data saw investors back sterling as speculation grew that the US Federal Reserve would look to stimulate the US economy. Yearly inflation moved back up above 3.0%, coming in at 3.1% despite expectations that price growth would tail off as the austerity packages take effect. The Bank of England seems rather obsessed with the inflation figures and seems to be using the data as an excuse not to implement measures to help stimulate the economy. This was alluded to by many analysts as poor house price data demonstrated that the economy is still in trouble. A survey by the Royal Institute of Chartered Surveyors showed the biggest one month fall in house prices since June. Out later today there is unemployment data and Bank of England governor Mervyn King speaks to the Trades Union Congress in Manchester. Speak to a trader today to make sure you get the best price on your foreign exchange.


In the USA, retail sales data showed the biggest growth in the last 5 months with figures coming in as expected at 0.4% growth and core sales up 0.6% on the month. This saw higher yielding ‘riskier’ currencies benefit including the Australian dollar which jumped to a 10 month high against its US counterpart. In terms of data, today sees a range of industrial data so call in now and speak to one of the team to protect yourself against poor exchange rates.


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