The Pound has spent a quiet session gradually climbing against the Euro as disappointing data out of the Eurozone and yesterdays comments by European Central Bank policy makers continued to weigh upon the single currency.
The Pound to Euro exchange rate is currently around 1.2008.
Sterling found support in a session devoid of any major domestic data releases from comments made by Bank of England policy maker Martin Weale. MR. Weake told a newspaper that he believes that UK interest rates should be increased as the nation’s economy continues to recover.
Weale told the Reading Post; “As the economy returns to normal, interest rates should return to more normal levels.”
Following his comments the Pound rallied for a second consecutive day and breached the key barrier of 1.20.
The GBP to USD exchange rate remained higher despite the release of stronger than expected durable goods and services PMI data.
The Consumer Department said that durable goods orders increased by 2.2% last month, ending a two-month long run of declines and beat economist forecasts for a rise of 1%. The data suggests that the US economy is starting to recover ground following the winter’s extreme weather.
According to Markit’s services PMI private sector activity in the United States grew more than expected in March. The index rose to 55.8, up from the previous month’s figure of 54.1.
“Service sector activity rebounded in March after a weather-torn February, but the survey is clearly flashing some warning lights as to whether the economy has lost some underlying momentum,” said Markit’s chief economist Chris Williamson.
Tomorrow sees the release of UK retail sales data and the latest GDP growth figures for the US, both sets of data are likely to create volatility.
US Dollar (USD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
US Dollar,,Euro,0.7251 ,
US Dollar,, Pound Sterling,0.6043 ,
US Dollar,,Australian Dollar,1.0829 ,
US Dollar,,Canadian Dollar,1.1161 ,
Pound Sterling,,Euro,1.2008 ,
Pound Sterling,,US Dollar,1.6565 ,