Upwardly revised growth forecasts for the UK, surprising upbeat budget deficit data and the expectation that the Bank of England may increase interest rates before 2016 boosted the Pound last week.
The Pound Sterling to US Dollar Exchange Rate was in the region of 1.6199 as of 12:45 GMT
The British currency was able to push above 1.20 against the Euro in the first half of last week, aided by some less-than-impressive data from the Eurozone, and closed five-days of trading fairly strongly against its main rivals.
1 US Dollar is currently worth 0.6174 pence
Today the Pound edged away from a four-week high against the US Dollar following a slightly disappointing UK mortgage approvals report.
However, Sterling declines were limited as investors looked ahead to this week’s domestic growth report, which is expected to confirm that the UK economy expanded by 0.8 per cent in the third quarter (quarter-on-quarter) and was up 1.5 per cent on the year.
The Pound also gained on the Euro as a European Central Bank official intimated that the option of introducing negative interest rates remains on the table.
According to Steven Saywell, a London-based foreign exchange strategist, ‘The Pound will do very well. Our valuation measures tell us that the Pound is still very cheap. Sterling has never regained the pre-crisis levels against the Euro or the Dollar. From that perspective, there’s a lot of upside’.
While UK news is fairly limited this week those reports which are due for release are influential.
Global economic developments, particularly those taking place in the US and Eurozone, may also have an impact on the Pound.
Key UK data for the week ahead:
Tuesday: Nationwide House Prices
Wednesday: UK GDP
Thursday: Lloyds Business Barometer
Friday: Net Consumer Credit
Mortgage Approvals
Current Pound Sterling (GBP) Exchange Rates:
< Down > Up
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6199 <
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1978 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7685 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9733 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6174 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8348 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5656 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5070 >
(As of 12:45 GMT)
