British Pound Sterling | Currency News Views and Outlook

British Pound Sterling: Currency weaker against USD and EUR as concerns over UK economy grow



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.


Advertisement - Article Continues Below




"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.

British pound exchange rates at Currency Watch

contribute your article

Currency Services

custom charting

Copyright 2012: The Economy News Ltd - a company registered in England and Wales, Number: 7097773. Contact Us

Our Privacy Policy is Here

 
Terms: The news items and information on this publication are provided in good faith that they are correct. However, no representation or guarantees regarding the accuracy of this information is provided. Use at your own risk.

At no point does the information on Economy-News.co.uk constitute investment advice, perceived or otherwise. You should always seek the opinion of a qualified adviser, broker or analyst before risking your investments on the financial markets.


 

Subscribe

Google Analytics Alternative