British Pound Sterling | Currency News Views and Outlook
British Pound Sterling: GBP to consolidate gains against Euro as UK inflation comes in weaker than expected
- Category: British Pound Sterling
- Published: Friday, 08 June 2012 13:56
- Written by Sam Coventry
The pound sterling (Currency:GBP) has consolidated against the Euro through today's currency trading session, but has lost some more ground against the US dollar:
At 14:50 BST the pound to euro exchange rate is trading sideways, but is 0.16 pct up on Thursday's close at 1.2382.
The pound US dollar FX pair is 0.77 pct down at 1.5413. (Looking for the latest FX forecasts? See what the professionals are saying at our IMT site, access is issued Free via our Facebook entrance page).
"The Pound remained relatively unchanged against the Euro this morning, trading at a high of 1.2380 and consolidating on yesterday’s gains following the decision from the Bank of England not to implement additional stimulus measures to support the UK economy. The UK currency traded lower versus the U.S Dollar, reaching a low of 1.5404 this morning, after peaking at a high just under 1.56 last night, as swings in risk sentiment continue to drive the market," says Adam James at TorFX.
"GBP is weak, having lost 0.6% against the USD since yesterday’s close on the back of rising risk aversion. Domestic data today focused on inflation, with PPI weaker than expected, falling ‐2.5%m/m on inputs and ‐0.2% m/m on outputs; however this was offset by rising inflationary expectations which could tie the BoE’s hands," says Caroline Sutton at Scotiabank.
The decline in global stock markets also had an impact on the higher-yielding currencies, as the Australian Dollar weakened against the Pound and the Dollar.
The Euro declined against the Dollar for a second day, after reports in Germany showed that exports tumbled in the region, while Italian industrial production contracted, adding to evidence that the debt crisis is sweeping across the region.