Pound foreign exchange rates: Friday 12 March Print
Written by Sam Coventry   
Friday, 12 March 2010 09:55
Pound Euro exchange rate is lower while Pound Dollar exchange rate is higher in morning trade in London.



The GBPEUR os lower by 0.025% with 1 GBP = 1.1015 EUR.

The GBPUSD is higher by 0.319% with 1 GBP = 1.5114 USD.

Pound Euro exchange rate

The British Pound managed to claw back some of Wednesday's sharp losses, gaining 0.4% following data from the Bank of England.

The Bank showed that consumer expectations for inflation over the next year inched higher, which gave the ailing pound some support.
Figures from the quarterly survey showed that on average, Britons are expecting an inflation rate of 2.5% in a year's time, compared with 2.4% in November.

Though the pound ticked above 1.10 it struggled to sustain these gains and analysts expect economic and political concerns to keep the UK currency under pressure in the near term.

Though the pound's recent slide has come off the back of a string of disappointing data, there is little currently to substantiate euro strength, and the markets may be reluctant to take sterling too low.

Ahead today, BoE MPC member Spencer Dale speaks at 10:00 and eurozone industrial production figures will be released at the same time.

Pound Dollar exchange rate


UK inflation expectations climbed to the highest since November 2008, fueling speculation that interest rates may rise sooner than expected.
In the US, figures yesterday revealed a narrowing of their trade deficit in January, which did provide some support for the dollar, though sterling was still able to close 0.55% higher.

The pound pushed back above 1.50, and indeed is continuing to press higher this morning, but analysts have noted that there have been brief upward bounces since October 2009 and the overall downtrend remains intact.

We are expecting more weakness over the near term, reflecting the broad bearish stance on the pound going into a UK general election, which is widely expected in May.

Data releases in the UK are sparse ahead of BoE minutes and employment data due next Wednesday.
Last Updated ( Friday, 12 March 2010 10:02 )
 
SEO by Artio