The US Dollar has strengthened against the Pound after data showed that the US trade deficit shrank to its lowest level since October 2009, beating economist forecasts.
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6508
According to the Washington based Commerce Department the trade gap fell by 22.4% to $34.2 billion, that’s down from Mays revised figure of $44.1 billion. Economists had been forecasting for the trade gap to narrow to $43.5 billion. The narrowing of the trade gap was aided by an all time high increase in exports and a three-month decline in imports.
The data now suggests that the US economy is recovering at a stronger pace than previously expected. The smaller trade deficit now suggests that the US government could raise its initial second quarter GDP estimate due for publication next week.
“All else being equal, this could mean a net upward revision worth about 0.8 percentage points and take second-quarter growth to 2.5%,” said Tim Quinlan, an economist at Wells Fargo Securities in an interview with Reuters.
Against the Euro the ‘Greenback’ remained softer due to the positive data out of the Eurozone. With that region also showing signs of recovery the markets are hopeful that the Great Recession is finally loosening its grip on the global economy.
US exports to the European Union increased by 1.5% in June after seeing a large drop in the first half of the year, the fact that European countries are increasing their purchasing US goods is another hint that things are improving. Exports to China grew by 4.5% in June whilst imports fell.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6508
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7538
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1123
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.3814
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0367
(Correct as of 14:45 pm GMT)
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