British Expats - GBP vs USD

Quote:

Originally Posted by NaimTakieddin (Post 9216151)

Hi,

Is there anyone who can reasonably explain the current value of GBP in comparison to USD!!

Shookran

The Pound Dollar exchange rate is 0.037% lower at 1 GBP = 1.6320 USD.

The Pound Euro exchange rate is higher day on day at 1 GBP = 1.1790 EUR.

The Pound Australian Dollar exchange rate is 0.027% lower at 1 GBP = 1.6069 AUD.

"The pound dollar rate continued on its upward trend, rallying for a third consecutive day to reach a fresh 13-month high," says foreign exchange analyst Duncan Higgins at Caxton Fx.

The USD is struggling at present with expectations that the Fed will hold rates at recessionary lows for longer that the UK and most other G10 economies.

Comments from the Fed Chairman have for some time now reiterated the need to keep accommodative policy in place despite improving economic conditions.

GBP is now trading above $1.63 and could still have further upside, although near term direction is likely to be dictated by tomorrow’s US non-farm employment report.

Higher oil prices are also weighing on the US currency at present, although news from Al Jazeera that a peace plan has been in agreed in Libya, could curb the rise in price and lend some support to the ailing greenback.

With regards to EUR, inflation in the eurozone has risen above the ECB’s target of 2.0% and with oil prices trading above $100 a barrel, inflationary pressures are set to continue, which has led speculation that the ECB may need to raise interest rates.

However, this has now to a large extent been priced in and the euro could be vulnerable to a drop in the wake of the meeting if Trichet’s comments fail to meet expectation.

GOOGLE