Following on from yesterday late afternoon, sterling has lost ground across the board this morning. The pound is up vs. the Japanese Yen and Swiss Franc, possibly due to carry trade unwinds and reduced risk aversion. This morning’s movement could be a correction from Friday’s rally for the pound, but looking in more detail at the key currency pairs there could be other reasons.
For Sterling Euro we have had positive consumer confidence figures from Germany this morning (showing a figure of 3.9 up from the 3.6 expected). German Import Prices also came in higher than expected at 0.9 from expectations of 0.7. Both appear to have had a positive effort on the Euro and with no data of note out today for the pound, this trend looks set to continue.
For sterling US Dollar (also known as Cable) the £17billiion losses announced by BP may have seduced demand for sterling a little, especially as US oil companies look set to benefit from BP plight. Surprisingly strong US home sales data yesterday has also helped strengthen the Dollar therefore pushing GBPUSD exchange rates down. For more information and insight into exchange rate movement and forecasts, fill in the form on the right.