• Sterling rises above $1.4600 vs dollar
• Further gains capped by strong Asian selling
• No change expected at 1100 GMT BoE rate decision
Sterling rose against the dollar on Thursday after being knocked by ratings agency comments earlier in the week, as investors took the view that bad news was largely priced in, but gains were capped by Asian selling.
Traders were readying for a Bank of England’s interest rate decision, due at 1100 GMT.
The pound rose briefly above $1.4600 against the greenback on Wednesday as investors bought back the currency, taking the view it was oversold after Fitch Ratings highlighted concerns over Britain’s hefty budget deficit. Early dealing on Thursday saw another test of the $1.4600 area, with sterling extending its recovery off post-Fitch lows of $1.4346 to $1.4621. Traders reported Middle Eastern demand but said further gains were limited by strong offers from a major Asian sovereign account. At 0737 GMT, the pound was trading up around 0.3 percent at $1.4585. Versus the euro, it was broadly unchanged at 82.50 pence, having risen to an 18-month high earlier in the week at 82.11, driven largely by concerns over the health of the euro zone financial system.
The BoE is due to announce its latest decision on interest rates at 1100 GMT, with the consensus for no change from the current record low of 0.5 percent. The central bank is also expected to stick with a pause in its asset purchase programme. The new coalition government is set to announce a round of spending cuts when on June 22 it delivers its first budget since coming to power, leading to concerns that Britain’s fledgling economic recovery may be hampered.
Exchange Rates:
GBP – EUR: 1.2146 GBP – JPY: 133.16 CAD – USD: 0.9637
GBP – USD: 1.4618 EUR – USD: 1.2063 GBP – ZAR: 11.361
GBP – AED: 5.370 EUR – JPY: 110.02 AUD – USD: 0.8394
GBP – CHF: 1.6752 EUR – AUD: 1.4501 GBP – NZD: 2.1765
GBP – AUD: 1.7589 EUR – NZD: 1.7940 GBP – CAD: 1.5187
JPY – USD: 0.0110
The rates above are for indication purposes only. Price can vary dramatically based on amount and delivery date.
t. 01322 389 050
f. 01322 389 059
e. info@thegroup4you.com
w. currencies4you.com
Key Sources: Currencies 4 You, Bloomberg, Reuters, Daily FX
Tags: 4 You Group, Buy Dollars, Buy Euros, Currencies 4 You, Exchange Rates, Foreign Exchange, Money Transfers
