23 to 27 August 2010: Weekly Sterling update

Currencies Direct August 27th 2010 - < 1 minute read

Revising UK GDP figures up a fraction has made little impression on the overall range of the pound although it is encouraging to see the Sterling-euro rate holding at 1.215 at the close of trading 27/08/10.

Perhaps worryingly, the improvement in the pound may now have an adverse affect on UK exports which were a factor in the improved figures. Importers have a little respite with this more attractive level. Germany’s industrial figures still give the UK cause for concern in the short term, and unemployment in the UK is playing on the government’s mind, but retail sales figures show that the consumer, although shrewder, is not daunted by the austerity measures that have animated political discussion of late. July and August are traditionally slow months in the retail money markets; however this year has shown a 10% increase in interest in overseas buys. Although some would argue that the UK banking sector does not deserve a holiday, it would seem that financial earnings figures, and a the relative evaporation of risk aversion, will find the pound at a more or less stable level come Tuesday.

Next week does see weighty information released from the United Kingdom, but as we have seen over the past four weeks, Sterling buyers are still keeping the UK afloat and this may transalte into an attempt to breach the higher 1.22 resistance level if the datas prooves positive.

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