Tuesday, February 18, 2014

Best Pound Dollar Exchange Rate (GBP/USD) In 30 Months As Sterling Finds Buying Support

The Pound Sterling (currency:GBP) continued to find solid buying support from the Bank of England inflation report on Wednesday with expectations that the UK would be the first major economy to sanction an increase in interest rates. The UK currency continued to push higher and probed resistance levels above 1.6650 GBP/USD versus the Dollar, reaching the best Pound to Dollar exchange rate in 30 months before being subjected to profit taking. The Euro was able to register a weak correction from very heavy losses and lows below 1.22 GBP/EUR. There was some interest in the Scottish referendum on independence, as UK political leaders looked to block any currency union if there was a vote for independence. The immediate Sterling was only limited, but it will be a potentially important factor if opinion polls start to show a closer contest. The Pound also made strong gains versus the higher yielding currencies, rising 2% versus the Australian Dollar to a high above 1.86 and traded close to 2.00 versus the New Zealand Dollar. 

The latest European Central Bank forecasts showed lower consumer inflation forecasts for 2014, but they also expected inflation to rise back towards the 2% target in 2016, a period which has been market out by ECB President Mario Draghi, as crucial when considering interest rates. The forecasts provided a limited push higher in the Euro on reduced speculation of action to relax policy at March’s council meeting. Dollar selling escalated once the 1.3650 area was broken with a move to test Euro resistance above 1.3680. The Euro was able to resist any significant selling pressure, despite continued tensions within the Italian government. Prime Minister Letta announced that he would tender his resignation on Friday and market concerns will increase if the chances of fresh elections to appear to increase while a new, more stable administration without elections would provide some support. 

The latest U.S retail sales data was weaker-than-expected with a headline decline of 0.4% for January, the second successive monthly fall, while core sales were unchanged over the month. The jobless claims were also slightly weaker-than-expected at 339,000, from 331,000 previously. Although this was still a solid release in underlying terms and there was only a limited decline in U.S bond yields, underlying U.S sentiment remained slightly weaker. 

Data Released 14th February 2014



EU 10:00 Trade Balance (December) 

EU 10:00 GDP (Q4 First Reading) 

U.S 13:30 Export / Import Prices (January) 

U.S 14:15 Industrial Output (January) 

- Capacity Utilisation 

U.S 14:55 Prelim’ Michigan Consumer Sentiment (February) 

Top 10 Pound Sterling / Dollar Exchange Rates (As of: 10:20 GMT 14/02/2014)



The Pound Sterling to US Dollar exchange rate is trading up +0.3% at 1.67061 GBP/USD. 

The Euro to US Dollar exchange rate is trading up +0.09% at 1.36903 EUR/USD. 

The US Dollar to Euro exchange rate is trading down -0.09% at 0.73044 USD/EUR. 

The US Dollar to Pound Sterling exchange rate is trading down -0.3% at 0.59858 USD/GBP. 

The Swiss Franc to US Dollar exchange rate is trading up +0.1% at 1.12030 CHF/USD. 

The Canadian Dollar to US Dollar exchange rate is trading up +0.22% at 0.91291 CAD/USD. 

The Hong Kong Dollar to US Dollar exchange rate is trading value +0% at 0.12894 HKD/USD. 

The Australian Dollar to US Dollar exchange rate is trading up +0.47% at 0.90248 AUD/USD. 
via:http://www.exchangerates.org.uk/news/8639/best-pound-dollar-exchange-rate-gbp-usd-30-months-sterling-buying.html

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