British Pound Sterling | Currency News Views and Outlook
British Pound Sterling: UK currency could peak at 1.5730 against the US dollar suggests a morning forecast note from UKForex
- Category: British Pound Sterling
- Published on Friday, 27 July 2012 09:05
- Written by Will Peters
The pound sterling (Currency:GBP) will look to capitalise on a day of hefty gains realised against the US dollar yesterday. That said, it is recovery mode against a host of other currencies.
The pound dollar exchange rate is virtually unchanged on a day-to-day basis at 1.5677.
The pound euro exchange rate is 0.27 pct higher at 1.2807.
The pound Australian dollar exchange rate is 0.15 pct lower at 1.5058.
It was a great day for sterling yesterday against the USD, and today we could see more of the same. Chris Applin at UKForex says they have 1.5730 pencilled in for the top of their GBP-USD range for today.
"GBP/USD closely tracked the impressive move higher in EUR/USD yesterday, topping out at 1.5724 from morning starting levels below the 1.5500 handle, giving a healthy 1.2% gain for the pound on the day and making the abysmal UK Q2 GDP numbers released on Wednesday seem like a distant memory," says Applin in a morning note to clients.
The main focus for investors today will be this afternoon’s US Q2 GDP number and the US Dollar (Currency:USD) will likely come under some pressure if the release prints weaker than the consensus call of 1.4% q/q.
The pound fell against the euro yesterday as the comments from ECB President Draghi sparked a substantial risk-rally.
"The prevailing EUR strength pushed the GBP/EUR cross to a low of 1.2718 from starting levels close to 1.2800, but sterling was resilient and managed to recoup most of its losses to end Thursday at 1.2770," says Applin.
UKForex forecast a range today in the GBP/EUR rate of 1.2700 to 1.2820.
The Australian dollar was another beneficiary of the Draghi comments yesterday, and UKForex expect a range today in the GBP/AUD rate of 1.4970 to 1.5120.