Sterling inched up against the dollar this morning supported by yesterday’s spate of positive economic data.
Pound Sterling – UK Markets
The pound extended its rally against the greenback for a fourth successive day after yesterday’s data showed an upward revision in UK economic growth for the last quarter of 2009, however further gains were capped by political uncertainty.
At 0925 GMT the pound was up versus the dollar to trade at 1.5071 having edged up 0.2% to 1.5112 earlier on. Sterling also traded at 1.1232 against the euro.
The pound enjoyed a good day yesterday, trading near to one month highs against a basket of currencies after UK Q4 GDP figures were revised upwards by 0.1% to 0.4%.
For anyone making a UK money transfer, it’s fairly clear that political risk in relation to the elections make a more sustainable recovery of sterling a challenge, and the currency is likely to remain pressured over the coming weeks.
US Dollar – US Markets
The Dollar continues to gain ground on the dollar index on the back of rising yields. In the last week, US 10 year yields have jumped over 30 basis points to be trading at their highest levels since January.
The dollar was also helped by US consumer confidence which showed an increase to over 50 from 46.4 in February.
AT 0933 GMT the greenback traded at GBP0.663 and EUR0.745.
Those hoping to make a US money transfer should keep an eye on the ADP Non-Farm Employment Change.
Euro – European Markets
The Euro continues to be bogged down, particularly against the dollar, as Greece concerns weigh on the single currency.
AT 0938 GMT the Euro traded at GBP0.8902 and USD1.3417
Economic data out today is expected to show little improvement with the Euro-zone unemployment rate for February expected to hit 10%. The rate of German unemployment change for March will also be closely monitored for further rises.
Other Currencies – Highlights
The yen headed for a monthly loss versus all of its major counterparts before reports forecast to show US companies added jobs and confidence among Japan’s large manufacturers improved. Signs that the global recovery is gathering steam damped demand for Japan’s currency as a refuge.
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