"The US dollar pushed higher against the other major currencies on Friday, as strong U.S. data lent further support to the greenback after a regional Federal Reserve chairman said the U.S. central bank may taper its asset buying program as soon as this summer," say Investing.com.
Elsewhere, the pound to euro exchange rate is 0.15 pct down at 1.1836.
The pound to Australian dollar exchange rate is 0.11 pct higher at 1.5589.
12:30: UniCredit Bank forecasting GBP strength next week
Dr. Vasileios Gkionakis, Global Head of FX Strategy at UniCredit Bank has consulted his mystic currency forecasting models. And good news is that GBP is tipped to be on the up!
He says this:
"Next, we turn to our short-term model trading signals. This week, the model suggests going long GBP and CAD against AUD and CHF. Medium term momentum has become supportive of sterling (despite the recent short-term setback) and also for CAD which at the same time saw an increase in 2Y swap rates on a monthly basis. At the same time, the recent big sell off in the Australian dollar did not go unnoticed by our model which now ranks AUD as the worst momentum play in the G-10 universe."
11:21: GBP/AUD tipped for 1.6
Good news for those looking to buy up Australian dollars - we could be in for further gains from here.
Vaughan Atton at UKForex is forecasting further GBP strength:
"It has taken 5 months, but the losses incurred during the first Quarter of this year between GBPAUD and been retraced. The pair has smashed through resistance to test 1.5650 this morning, testing the highest level since January 1st and a major technical level, which if broken would set the pair up for a rally to 1.60."
8:25: Sterling forecasted to remain volatile
UniCredit Bank chip in with their outlook for sterling today:
"Weaker US data helped cable pull back to 1.53 yesterday, but gains again proved short-lived and sterling is likely to remain volatile for the time being. Here too charts indicate that cable has to break above 1.5415 to really gain more momentum. In turn, seesawing in the 0.84-0.8450 area is still likely for EUR-GBP."
7:50: GBP firm ahead of market open
The British pound sterling (Currency:GBP) is looking firm across the board as we approach the market open in London:
The pound to euro exchange rate is 0.04 pct in the red at 1.1850.
The pound to US dollar exchange rate is 0.17 pct lower at 1.5243.
The pound to Australian dollar exchange rate is 0.5 pct higher at 1.5646.
NB: The above quotes are from inter-bank markets - your own bank will affix a discretionary spread to the retail exchange rate they offer you. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering you more currency. Please find out more here.
7:45: Sterling forecasted to remain robust
The morning forecast note from Lloyds Bank Research tells of further solid performances by the British pound:
"The more positive tone to recent UK data and the upbeat tone to the Inflation Report failed to prevent GBP/USD slipping back 4 figures in a week, but the softer US data yesterday has given GBP/USD some relief, and there is scope for GBP/USD to extend yesterday’s rally given that the short term market is likely to have amassed some short GBP/USD positions over the last week.
"EUR/GBP is likely to continue to struggle to break out of the 0.84-0.85 range, but the more positive recent GBP sentiment suggests short term risks are towards a test of the downside."