The Pound Presses Further On Up

The Pound has maintained its gains of last week with mid-market rates sitting at 1.5054 against the US Dollar and sitting at 1.2166 against the Euro at 10.15am this morning. The twenty advanced world economies that make up the G20 nation group concluded their weekend meeting in Toronto with a shared goal to halve deficits by 2013.

Pound Sterling – UK Markets

Sterling is continuing to rise on the back of positive housing data overnight and following on from the strong budget last week. Significant data this week that may affect Sterling markets are money supply, mortgage approvals and consumer confidence on Tuesday followed by further house price statistics and GDP figures on Thursday. Speak to your broker today to discuss taking advantage of strong Sterling rates and protecting yourself from any volatility for any upcoming trades.

US Dollar – US Markets

The US Dollar is continuing to lose out to the Pound and the Japanese Yen following on from signs last week that the US recovery is slowing down. Markets will be looking at some key U.S data releases this week. This begins with US Personal Income and Consumption Expenditure today and ends with joblessness data on Friday. Following the G20 summit over the weekend, the US will be watching closely to see the extent to which China relaxes its currency policy which should help boost US exports and reduce their trade deficit.

Euro – European Markets

The Euro is still under a lot of pressure against the Pound following the G20’s focus on economic recovery and the Eurozone crisis this weekend. J P Morgan Chase & Co’s latest quarterly survey has revealed that corporations from the US, Japan and Europe expect the Euro to remain under pressure against the US Dollar for the rest of the year.

Other Currencies – Highlights

The G20 meeting this weekend resulted in the advanced economies mutually agreeing to halve their deficits by 2013. Whilst European nations such as the UK, Germany and France have already taken significant steps to reduce deficits, the US in particular has warned against budget cuts that occur too fast and emphasized the importance of continuing some growth stimulus spending plans. Proposals for a worldwide levy on banks were dropped with individual nations having the freedom to decide their own policy on this matter. China’s decision to let Chinese currencies begin to appreciate rather than being pegged to the US Dollar putting Chinese exports at an advantage has been welcomed by the US.