Subscriber login Close [x]
remember me
You are not logged in.

Currency update, August 4 : sterling stops short of key level

Published:  04 August, 2010

Sterling hit a new 6 month high against the US dollar yesterday after improved sentiment towards the UK and concerns over the state of the US recovery.

Currency Rates

EURO/GBP - 1.207
US$/GBP - 1.593
CHF/GBP - 1.660
CAN$/GBP - 1.634
AUS$/GBP - 1.746
ZAR/GBP - 11.656
JPY/GBP - 136.32
HKD/GBP - 12.369
NZD/GBP - 2.176
EURO/US$ - 1.319
HUF/GBP - 341.40

The pound hit $1.5968/£1 at lunchtime yesterday, buoyed by robust bank earnings data and recent strong UK economic data from the manufacturing sector and better than expected growth figures on Friday. However, sterling's run was held back after construction activity data fell to a four month low. As a result, sterling stopped just short of the key level of $1.5970/£1, which is an important 'technical' recovery point from May's $1.4225/£1 low. Whilst we might see sterling push through this level after today's service sector data (which is expected to show growth) there is expected to be strong resistance at the $1.60/£1 level - firstly from a psychological perspective, and as there are reportedly numerous 'sell' orders set to trigger at that price, which will see sterling drop should we hit that price. Either way, get in touch now to ensure you are taking advantage.

In the Eurozone, the euro had a flat day against sterling but strengthened to a high of $1.3262/€1 as concerns over the US economy saw the US dollar lose ground across the board. Inflation data for the Eurozone came in slightly worse than expected, showing 0.3% against an expectation of 0.4%. Out today, there is purchasing manager data and also retail sales which are expected to be flat. Despite a quiet day on the sterling/ euro front, there is always potential for significant volatility. Call in now for a live exchange rate.

In the USA, personal spending and income figures came in worse than expected; pending home sales fell by 2.6% on the month and factory orders for the month dropped by 1.2% - again, far worse than expected. In addition, Ben Bernanke alluded to further emergency funding in a speech last night in order to jump start the US recovery after several months of poor US data. This added to the US dollar's woes. Ensure you don't miss out - especially if you need to move US dollars into sterling at any point in the future.

Elsewhere, Australia's trade balance surprised sharply to the upside with the surplus widening to $3.5bn unexpectedly. Exports rose unexpectedly after a 23% jump in metal ore sales and a 15% increase in coal shipments. Call in now for a live price.

Smart Currency Exchange is a currency partner to Harpers Wine and Spirit. Harpers Wine and Spirit has teamed up with Smart to provide readers with a free bespoke currency service.

If you are making or receiving international payments and are interested in talking to Smart please go to: to get a FREE no obligation quote or to download the Smart Wine and Spirit report. Alternatively call Smart on 0207 898 0500.