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Positive UK manufacturing figures sees sterling hit high

Published:  08 December, 2010

Sterling hit the highest level against the US dollar for two weeks yesterday, as better than expected UK manufacturing figures and a strong GDP estimate helped point towards a continued economic recovery.

Sterling hit the highest level against the US dollar for two weeks yesterday, as better than expected UK manufacturing figures and a strong GDP estimate helped point towards a continued economic recovery. 

Daily currency rates

EURO/GBP - 1.1894

US$/GBP - 1.5708
CHF/GBP
- 1.5514
CAN$/GBP
- 1.5901
AUS$/GBP
- 1.6049
ZAR/GBP
- 10.9562
JPY/GBP
- 131.91
HKD/GBP
- 12.2056
NZD/GBP
- 2.0941
SEK/GBP
- 10.8941
US$/EURO
- 1.32018

Manufacturing figures showed that output rose by 0.6% in October - double what was expected. In addition, data from the National Institute for Social and Economic Research estimated that the UK had grown by 0.6% in the 3 months to November. In a bizarre coincidence of the "0.6's", sterling finished the day up 0.6% against the US dollar at just over $1.58/£1 as the figures detracted from the possibility of further Quantitative Easing. 

In the Euro zone, optimism that the Irish parliament would approve the emergency budget saw the euro recover recent losses against the US dollar in early trading. However, when Irish Finance Minister Brian Lenihan began his presentation, the euro began to slide again. The budget sets out plans to cut €6bn of spending out of an economy that is still reeling from a prolonged recession. Whilst the Irish budget may alleviate some political concerns, European Finance Ministers failed to outline in any detail their plans to help stabilise European credit markets and avoid a wholesale collapse of the single currency. 

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