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Home Forex Check Forex Rate Exchange rates: Pound against the Euro and Dollar
Exchange rates: Pound against the Euro and Dollar PDF Print E-mail
Written by Sam Coventry   
Friday, 19 March 2010 10:09
The pound euro exchange rate and the pound dollar exchange rate are both lower in morning trade. An uneventful day in terms of data awaits.



The GBPUSD is lower by 0.676% with 1 GBP = 1.5144 USD at 9am in London.

The GBPEUR is lower by 0.559% with 1 GBP = 1.1144 EUR.

The British Pound enjoyed another positive run against the Euro yesterday, climbing half a cent to briefly trade above 1.12 following encouraging UK borrowing figures.

According to analysts at Caxton FX the pound rose to a three-week high after UK public sector net borrowing came in lower than expected and as talk emerged of foreign interest in buying British firms.

Public borrowing was the highest on record for a February at £12.4 billion, but below economists' forecast of £14.8 billion, something that exchange rate markets liked.

Importantly, the figures indicated that the budget deficit for the year to April may come in below the government's bleak forecast of £178b, giving room for the ruling Labour Party to boost spending ahead of the election.

Traders also cited that sterling got a boost from renewed M&A talk: Exxon Mobil expressed interest in British gas producer BG Group, whilst separately Deutsche Bahn confirmed it was in talks with Arriva over a possible takeover bid.

The pound has reversed its gains this morning though after MPC member Andrew Sentence cautioned about the continued risks of a double-dip recession. Currently the pair is trading around 1.1150.

Pound Dollar exchange rate

Sterling slipped back half a percent against the dollar yesterday, with UK borrowing figures unable to provide a boost against the broadly stronger US currency.

The pound briefly touched a session high of $1.5328, nearing a three-week peak of $1.5382 hit on Wednesday, before erasing gains on broad dollar buying.
Despite the brighter February UK public borrowing figures it does not change the wider picture of UK debt and the efforts that are still needed to consolidate the budget deficit over the medium term.

M&A talk gave the pound some support, preventing it from falling too sharply, with interest being expressed in both BG Group and Arriva.

The US dollar got an added boost in the afternoon session after an index of business conditions in the Philadelphia district rose above expectations.

Sterling has dipped below $1.52 this morning following some cautious comments from an MPC policymaker.
Last Updated ( Friday, 19 March 2010 10:11 )
 

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