Foreign Exchange Rates: Pound Sterling Edges Lower vs Euro (GBP/EUR) & US Dollar (GBP/USD)

Foreign Exchange Rates: Pound Sterling Edges Lower vs Euro (GBP/EUR) & US Dollar (GBP/USD)

Sterling endured a poor session yesterday following a brace of weak UK data releases. However, losses for GBP USD were tempered by more poor data from the States.

The Pound US Dollar exchange rate (GBP/USD) is currently trading up by 0.03% at 1.6161 GBP/USD. The US Dollar Pound exchange rate is currently trading at 0.6188 USD/GBP.

A generally disappointing day for UK data releases yesterday saw the Pound drift lower on the day against almost all of the other sixteen most actively traded global currencies. An early reading of October’s UK Retail Sales from the CBI revealed that British shop sales have flatlined this month, adding to the recent impression that the tentative domestic economic recovery is running out of steam.

This impression was added to by the latest Land Registry figures which suggested that the average UK property price increased by a year-on-year 3.4% over the past twelve months. This is only marginally above the annualised increase in general consumer prices, putting paid to the notion that a housing sector bubble is underway in Britain.

Weak support for Sterling on the day sent the Pound euro exchange rate down very briefly into the 1.1600s during the latter part of the European equities session before recovering slightly. The 1.1700 level now appears to be a dependable level of support for the pair moving forward following two distinct tests followed by a rejection for GBP EUR during the past week.

Meanwhile, the Pound US Dollar exchange rate (GBP/USD) spent virtually all of the session loitering in the 1.6100s. Losses for the Pound against the Buck would have been of a greater magnitude on the day were it not for a continued lack of support for the US tender. Tame Pending Home Sales and Manufacturing Production figures, published in the US yesterday afternoon, ensured that the Greenback remained friendless on the session, with most investors now predicting the Fed’s $85bn per month Quantitative Easing programme will remain at its current level into 2014.

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