Sterling still strong – 7 week high against USD

Good Morning. Sterling hit a 7 week high against the USD yesterday, boosted by solid UK economic data, with some analysts saying the prospect of a hung parliament after May’s election looked to be priced in. Rates against the Euro remained fairly rangebound, still close to a 7 week high. Rates @ 09:00am are as follows:

  • GBP/EUR 1.1380
    GBP/USD 1.5475
    GBP/AUD 1.6566
    GBP/NZD 2.1652
    GBP/CHF 1.6323
    GBP/CAD 1.5444
    GBP/ZAR 11.326
    GBP/JPY 144.04
    EUR/USD 1.3597

Evidence that the economy is faring better than expected has prompted a slight recovery in the pound, which has been knocked by concerns about Britain’s mounting debts and uncertainty linked to the election outcome. However, do be aware the continued political uncertainty will continue to affect rates over the remainder of the month.

Euro may weaken further?

Portugal may need to take additional steps to cut its budget deficit if economic conditions worsen, the European Commission was warned. European Commissioner for Economic Policy Olli Rehn said Portugal’s planned budget cuts were “ambitious”, but may have to be extended this year. Further problems in the EU could cause the Euro to weaken.

Todays Data

Following Trade Balance data from the UK and US earlier in the week, today is the EU’s turn. There is also a monthly report from the EU, and some jobless data from the USA.

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