Pound reaches one month high against Dollar

Since late yesterday afternoon, the Pound has reached near one month highs against the US Dollar. The upcoming UK emergency budget on the 22nd June may bring volatility so speak with a broker at Currency Solutions for advice about protecting yourself.

Euro – European Markets

The Euro has advanced against both the US Dollar and the Yen as well as most of its other major counterparts as concern eased over Spain’s debt woes where a large sum was raised through bond sales.

Pound Sterling - UK markets

The Pound has gained against the US Dollar amid positive signs for the UK economic recovery. Investors have reacted to the decrease in the UK unemployment rate announced yesterday as well as an increase in UK retail sales. This was following a dip subsequent to Bank of England Governor Mervin King discussing how the UK is still struggling to shake off the effects of the recession. As the emergency budget and spending cuts approach, the Pound may be vulnerable and its current strong position against the Dollar could be temporary, depending on how markets react.

US Dollar – US Markets

The Dollar has lost out against the Pound. It has also weakened against the Euro overnight although it started to pick up this morning. Due today are US consumer price index reports which may cause some movement.

Other Currencies – Highlights

The Swiss Franc has gained on the Euro as the Swiss central bank announced that deflationary risks are minimal. Asian currencies have lost ground overnight and their export market is likely to have increased competition from Europe.