The pound continues to ride its luck this morning as concerns continue to blight the European currency and traders appear to have set sterling’s weak growth figures this week to one side.
Pound Sterling – UK Markets
Sterling rose broadly this morning to hover around a five-month high against the euro as the Euro-Zone debt bug continued to poison the single currency.
The pound was also supported by data showing a jump in British house prices as well as rising consumer confidence. At 1000 GMT the pound sat at 1.157 against the euro and 1.614 versus the dollar.
US Dollar – US Markets
Trading patterns suggest that the dollar could be poised to reach a six-month high against the Swiss franc after the greenback breached a 200-day moving average line against the currency.
The greenback brightened after the US Labor Department reported that the number of initial jobless claims in the latest week had reduced. The dollar’s gains accelerated against major currencies after the Federal Reserve kept Interest Rates near zero as expected, leaving it trading at GBP0.619 and EUR0.716.
Today’s main data focus for the dollar will be US fourth-quarter gross domestic product (GDP) at 1330 GMT.
Euro – European Markets
The euro has taken quite a thrashing in the past week as worries about how Athens will deal with its debts saw investors fleeing Greek government bonds.
Yesterday the yield spread between Greek and German government bonds expanded wider than ever before and traders said that further blowouts would result in euro selling, which would boost the pound.
Today, the euro traded at 0.863 versus sterling and 1.395 against the dollar at 1019 GMT.
Other Currencies – Highlights
Asian currencies fell this week, led by South Korea’s won and the Philippine peso, on concern tighter lending controls in China will damp regional trade as the risk of a Greek debt default curbs demand for emerging-market assets.
US Dollar Continues to Outperform European Rivals
Pound falls further
British Pound Suffers Losses Ahead of Tuesday's Critical Vote