Sterling fell against the euro and the dollar this morning, pressured by concerns about a dwindling UK economy and high debt levels as the election campaign got underway.
Pound Sterling – UK Markets
The pound had made progress against the dollar yesterday after above-forecast UK manufacturing activity and mortgage approvals data stoked optimism that the economy was improving, but these gains came to a halt.
The UK hasn’t managed to alleviate anxieties about its economy and this continues to pile pressure on the pound which currently trades down 0.2% against the dollar at USD1.606 and is held against the euro at 1.115.
US Dollar – US Markets
Currency markets saw quiet trading for the dollar until rumors of large-scale repatriation by Japanese exporters pushed the yen higher against the US currency, reverberating across the majors and weighing on the greenback against most of its top counterparts.
The dollar currently trades against the pound at 0.619 and 0.690 versus the euro.
Euro – European Markets
The euro rose 0.3% to 89.76 pence this morning, having earlier hit a high of 89.94 pence, just shy of the 90.00 level.
Experts anticipate a bullish direction for the single currency today that will target 1.452 and may attempts to reach 1.460.
Other Currencies – Highlights
The yen rose the most in four weeks against the dollar on speculation some of the nation’s exporters took advantage of its declines to covert overseas earnings back into their own currency.
The Japanese currency, which dropped for four straight days last week, also gained against the euro to 132.68 from 133.34 yesterday as well as the pound and the Swiss franc.
Dollar Rally Loses Steam on Mixed Data
Pound's freefall continues despite the upbeat employment report