The Pound Sterling Exchange Rate was in the region of 1.1564 against the Euro as of 10:02 am
The UK’s outlook brightened briefly yesterday as services PMI for the nation defied economists’ expectations and rose to 51.5, a return to growth after the previous month’s contraction.
This result led some industry experts to assert that a dreaded and unprecedented triple-dip recession might be avoided.
However, positive developments in the Eurozone limited the Pound’s gains yesterday while a disappointing UK housing report caused Sterling to tumble against the US Dollar this morning.
The Pound was already trading within reaching distance of a five-month low against the ‘Greenback’ but following the release of uninspiring housing data Sterling slumped to a six-month low.
According to mortgage lender Halifax, UK house prices fell by 0.2 per cent in January, following December’s negatively revised gain of 1 per cent.
Whilst this dip may appear concerning, house prices in the fourth quarter of 2012 were up 1.3 per cent on the year, only slightly less than forecast.
Martin Ellis, an economist with Halifax, released the following statement with the report: ‘The Funding for Lending Scheme has helped lenders lower interest rates and improve availability in the past few months. This is likely to have been a factor contributing to the pick-up in both home sales and prices. [However] overall we expect continuing broad stability in house prices nationally in 2013.’
Ellis also added that restraints on household finances and lacklustre economic growth would limit demand for housing in the months ahead.
Despite this news the Pound was still able to climb slightly on a broadly softening Euro. The Euro weakened against the majority of its key competitors in anticipation of the European Central Bank’s upcoming rate decision and in the wake of renewed political turmoil in Spain and Italy.
Tomorrow’s Bank of England Rate decision is also likely to cause significant movement in the marketplace.
As one industry expert commented: ‘Investors are becoming more conscious of the deterioration in the UK outlook. [2013] is going to be a tough year with sub-trend growth.’ If the BoE’s comments support this viewpoint the Pound could experience widespread declines.
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1564
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5657
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5186
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8607
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5607
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7514
The Pound Sterling to Swiss Franc is currently trading at 1.4283
The Pound Sterling to Japanese Yen exchange rate is currently trading at 146.7100
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