With last week’s services, construction and manufacturing PMI supporting the case for the Bank of England refraining from adding to current stimulus levels, the Pound began the local session slightly stronger against the US Dollar.
The Pound Sterling to US Dollar Exchange Rate was in the region of 1.6061 as of 11:30 GMT.
As the BoE policy meeting approaches Sterling was able to trim last week’s decline against the ‘Greenback’ and edge away from an almost month-low against the Euro.
The Pound went on to extend gains as a report showed that positive sentiment in the UK’s finance sector climbed to a 17-year high in the three months from September.
In data compiled by the Confederation of British Industry 53 per cent of survey respondents cited improved business optimism in the third quarter – a significant surge from the 31 per cent recorded in the second quarter.
1 US Dollar is currently worth 0.6227 pence
Sterling consequently recouped losses recorded against both the US Dollar and Euro last week after economists speculated that the currency’s recent rally had been excessive.
As senior currency strategist Paul Robson observed; ‘At the moment, you can’t ignore the data. People have to decide whether the longer-term outlook for Sterling is still challenging or the pickup in data that we’ve seen suggests that the recovery will be robust.’
Robson did add that some industry experts believe the Pound is too bullish at current levels.
This morning the GBP/EUR pairing also benefited from a surprising decline in the Sentix investor confidence gauge for the Eurozone.
UK reports to focus on this week include tomorrow’s RICS house price balance, Wednesday’s industrial/manufacturing production and trade balance, plus the NIESR GDP estimate for September and Thursday’s Bank of England rate decision. Friday’s construction output figures, while unlikely to inspire much volatility, will also be worth noting.
US developments concerning the ongoing federal shutdown and the looming fiscal cliff will also be major causes of market movement.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6061 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1826 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7065 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9415 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6227 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8454 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5862 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5153 <
(As of 11:30 GMT)
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