British Pound Sterling | Currency News Views and Outlook
British Pound Sterling: UK currency receives a timely boost from services data - recovering vs USD, EUR and AUD
- Category: British Pound Sterling
- Published on Thursday, 07 June 2012 08:58
- Written by Sam Coventry
The next hurdle for the pound sterling comes in the form of the Bank of England's Monetary Policy Committee decision on interest rates and quantitative easing
The pound sterling (Currency:GBP) is making a hearty attempt to recover ground lost against the key FX majors as we head into mid-morning trade in London.
The pound euro exchange rate is 0.06 pct higher on Wednesday's close - GBP/EUR is at 1.2323, earlier the pair had been floundering at 1.2297. (Please note we publish our investment bank FX forecasts on our IMT site - access is Free at our Facebook gateway page here).
The pound dollar exchange rate is now 0.12 pct down on yesterday's close at 1.5475 - the currency pair has recovered from a morning low of 1.5429.
The pound Australian dollar exchange rate is still deeply in the red though - GBP/AUD is at 1.5567 - but the morning low was seen at 1.5523.
The game changer for sterling this morning has been a good turnout in the latest CIPS Services PMI.
The May reading came in at 53.3, analyst forecasts were at 52.4 and April's reading was seen at 53.3.
The next hurdle for the pound sterling comes in the form of the Bank of England's Monetary Policy Committee decision on interest rates and quantitative easing at 12:00 BST.
The majority of analysts believe it will leave both interest rates and its quantitative easing targets unchanged, but there are those that suspect the Bank may raise asset purchases to aid a flagging economy.
Policymakers will also be concerned that the euro zone's worsening debt crisis is likely to drag on the UK economy.