After strengthening this week in response to positive UK retail sales data and news that new Bank of England Governor Mark Carney has the backing of all members of the Monetary Policy committee, the Pound was heading for a second consecutive five-day gain against the US Dollar as the European session began.
The Pound Sterling to US Dollar Exchange Rate was in the region of $1.5237 as of 10:50 GMT
Sterling was able to consolidate recent gains against the US Dollar overnight as Federal Reserve Chairman Ben Bernanke continued to throw water on the fire of easing speculation.
This week a quieter market has helped the Pound gain by 0.8 per cent against the US Dollar and roughly 0.4 per cent against the Euro.
1 US Dollar is currently worth 0.6560 pence
The GBP/USD exchange rate hit a low of 1.5195 pence per Dollar
The British currency was little changed against its American counterpart but slightly stronger against the Euro as the local session progressed, despite a report showing an unexpected increase in the UK budget deficit.
According to Office for National Statistics figures, the deteriorating financial situation of local governments caused net borrowing to increase to 12.4 billion Pounds in June from 11.9 billion Pounds in the same period of the previous year.
Ecobomists expected the shortfall to narrow to 8 billion Pounds.
After the data was released chief economist Howard Archer asserted that Chancellor of the Exchequer George Osborne will be ‘fervently hoping that the economy can extend and build on its recent signs of improvement. If it can, it will not only increase the chances of beating the fiscal targets for 2013/14 but make it easier for him to rebut calls for an easing up in the pace of fiscal austerity.’
Next week key pieces of UK economic news to look out for include Tuesday’s home purchase loans report and Thursday’s second quarter GDP figures.
Current Pound Sterling (GBP) Exchange Rates
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5237>
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1631 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6614 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9181 <
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6560 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8597 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6019 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5210 >
(As of 10:50 GMT)
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