USD/GBP Rate & Comments for 17th August 2010

USD/GBP - 1.565

Sterling reclaimed some of the ground lost against the US dollar last week, rising 0.4% yesterday to hit $1.5665/£1 after risk sentiment improved in trading yesterday. Against the euro, sterling slipped after house price data showed that the housing market had faltered in the last month. Data from Rightmove showed that prices slipped by 1.7% against an expected gain of 0.6%. This saw sterling drop by 0.4% against the euro as additional positive data added to the single currency. Aside from the house price data, it was a relatively quiet day for sterling. However, there is key inflation data out today and retail sales data released later in the week with the most important release being Wednesday’s Bank of England minutes likely to cause the most market movement. What most investors are looking for is whether any of the Monetary Policy Committee members joined Andrew Sentance in voting for an interest rate rise, as he did last month. Call in and speak to a trader to ensure you protect yourself from the markets moving against you.

In the USA, the boost in risk appetite in the Euro zone saw the US dollar drop off against sterling and the euro. Global stock markets recovered as investors looked to pick up relatively cheap stocks and shares after last week’s risk aversion devalued stock markets. Elsewhere, data showed that there was a net overall outflow of capital out of the USA in June. One of the major reasons was that the Chinese government has started buying Japanese government over the US equivalent as it feels that Japanese bonds are a lot less risky than their US counterparts. This general lack of interest for US investments is not great news for the US dollar. Call in now to make sure you take advantage.

Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.

USD/GBP Rate & Comments for 27th July 2010

USD/GBP - 1.547

Sterling hit a 5 month high against the US dollar in early trading this morning, tentatively reaching $1.5530/£1 in early trading as investors looked to target ‘riskier’ trades. Following Friday’s generally benign stress test results for European banks, stock markets rose globally yesterday as appetite for risk grew amongst global investors despite heavy criticism of the tests from many commentators for not going far enough. Sterling has benefited from strong economic data recently and this has seen strength against the US dollar. Many analysts pointed to the fact that the pound is limited in where it can go against the US dollar simply by the sheer performance it has put in over the last week, but there is potential for the pound to strengthen further against the euro. After a very quiet day yesterday on the data front, there is CBI realised sales data out today which is a useful indicator of sales volume/ performance amongst retailers and wholesalers. Call in now for a live exchange rate.

In the USA, the major piece of data was US new home sales which provided a rare ray of light in an otherwise gloomy housing market. The figures showed a jump of 23.6% to an annual rate of 330,000 from a downwardly revised figure of 267,000 units in May. This was the largest percentage jump since May 1980 and has been attributed to the expiry of tax credits in April which saw a record low figure in June. Out later today there is consumer confidence data which is expected to show a mild decline following recent poor data. Call in now to take advantage of the best US dollar prices for 5 months.

Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.