The Pound is weaker against the Euro after data out of Germany gave support to the single currency, against the US Dollar; Sterling fell as investors favoured the safe haven currency as tensions rise in the Middle East.
In a session that sees no important news for the British currency the Pound’s movements are being driven by international factors. Better-than-expected ifo institute data for Germany lent support to the Euro which is coming close to the key 1.16 region. The ifo’s business climate index climbed to 107.5 in August, up from the 106.2 recorded in July making it the highest reading since April 2012. Economists had been calling for a rise to 107.
The Pound is also being weighed upon by speculation that Bank of England Governor Mark Carney will signal his intention to maintain borrowing costs at a record low in tomorrow’s speech. The speculation follows comments made by deputy governor Charlie Bean who said that Central Bank policy makers intend to maintain interest rates at record lows for the seeable future. Bean however did calm investor concerns over the emergence of possible bubble in the UK’s housing market.
“We wouldn’t want to see a house price boom emerging which would have potential problems further down the road; I can’t say we see signs of that at the moment. At this stage, you certainly wouldn’t say there’s a problem,” Bean said in an interview with Bloomberg.
The Pound is likely to weaken further as concerns build that the UK will involve itself with any military action being planned against Syria. According to reports the UK government is drawing up plans for military action in response to the use of chemical weapons in the brutal civil war ravaging Syria.
Syrian rebels say the Assad government was responsible, but Syria’s foreign minister said on Tuesday this was a “total lie” and accused the US of using it as an “inaccurate excuse” to intervene in the two-year military conflict in the country. Russia and Iran have warned of grave consequences should the West intervene.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5515<
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1622 <
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7331>
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9958 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6400 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8602 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5770 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5021 >
(As of 12:00 pm GMT)
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