British Pound Sterling | Currency News Views and Outlook
- Category: British Pound Sterling
- Published: Tuesday, 22 November 2011 11:46
- Written by Sam Coventry
The pound euro exchange rate is 0.923% lower on the day with 1 GBP = 1.1566 EUR at 11 AM in London.
The pound dollar exchange rate is 0.842% lower with 1 GBP = 1.5662 USD.
The Australian dollar exchange rate is 0.636% higher with 1 GBP = 1.5881 AUD.
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"The British Pound remained on the defensive yesterday and slumped to near six week lows against the Dollar, finding support in the region of 1.56 before correcting slightly higher through the course of the day," says Adam Solomon, currency analyst at TorFx.
The UK currency also lost over 1% in value against the Euro, trading down towards 1.1574, amid a lack of confidence in the UK economic outlook and reports that the Euro was oversold as a measure of stability returned to the market.
The lack of confidence in the UK economy has been compounded by recent economic reports on declining business confidence and weak retails sales leading into the Christmas period.
The Pound has benefited from its position outside the Euro-zone and has gained against the Euro as a haven from the sovereign debt crisis.
"However, there are concerns that capital flows may fade at current yield levels, especially given the medium term fears over the UK outlook. The Pound is also more vulnerable to swings in risk sentiment and with equity markets under intense pressure, the U.S Dollar is gaining as a lower-risk asset. The Pound also came under renewed selling pressure, after a report from Rightmove Plc showed that UK house prices declined by the most in a year," says Solomon.