Pound Sterling (GBP) to USD, CAD & AUD softer on profit taking

The Pound eased against a number of peers on Friday after the release of positive UK production data spurred investors to lock in profits.

Against the US Dollar the Pound exchange rate eased to its lowest level since May 6th and dipped against currencies such as the Australian Dollar and Canadian Dollar. Against the Euro the Pound remained firmer following yesterdays comments made by European Central Bank Governor Mario Draghi.

Data released on Friday showed that UK manufacturing production increased by 0.5% in March. The figure was slightly better than the expected figure of 0.3%. The figure was lower than the previous month’s figure of 1%.

Another report shows that the UK trade deficit narrowed to £8.48 billion in March from the £8.75 billion in February. The February figure was revised from an estimated deficit of £9.09 billion.

According to the National Institute of Economic and Social Research (NIESR) UK growth will exceed the high recorded in 2008. The institute now predicts that GDP will expand by 2.9% this year, 0.4% higher than its previous forecast three months ago.

“The end of the Great Recession, it is an important moment. The British economy is very close to being bigger than it has ever been. Symbolically, that matters, and it comes at a time when growth is clearly entrenched,” said Jonathan Portes, director of NIESR.

The positive data is the latest in a string of positive reports and suggests that the UK economy is continuing to see its recovery accelerate. The data adds further pressure to the Bank of England to raise interest rates sooner than expected.

Pound (GBP) Exchange Rates

[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,,US Dollar,1.6926 ,
Pound Sterling,,Euro,1.2245 ,
Pound Sterling,,Australian Dollar,1.8061 ,
Pound Sterling,,New Zealand Dollar,1.9581 ,
US Dollar,,Pound Sterling,0.5908 ,
Euro,, Pound Sterling ,0.8165 ,
Australian Dollar,, Pound Sterling ,0.5530 ,
New Zealand Dollar,,Pound Sterling,0.5109 ,

[/table]