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Sterling reaches six month high against dollar

Sterling reached a fresh six month high of 1.6160 against the US dollar yesterday, whilst pushing slightly higher against the euro reaching 1.2275.

Currency rates  - April 25

EURO/GBP - 1.2235

US$/GBP - 1.6134

CHF/GBP - 1.4703

CAN$/GBP - 1.5932

AUS$/GBP - 1.5654

ZAR/GBP - 12.561

JPY/GBP - 131.39

HKD/GBP - 12.5219

NZD/GBP - 1.9891

SEK/GBP - 10.871

AED/GBP - 5.9241

US$/EURO - 1.3190

INR/GBP - 84.85

Sterling weakened in the afternoon against the euro as public sector borrowing for March came in above market expectations.  Borrowing has reached £15.8 billion, with the total debt exceeding the £1 trillion mark for the first time ever. Today's quarterly GDP data will be watched closely by investors as clear sign of economic health in the country.

The euro started the day under a lot of pressure before rallying against the majority of currencies as successful debt auctions from Spain and Italy boosted market confidence. The European Central Bank's president is speaking first thing this morning and should provide some insight on the state of the economy in the Eurozone.

US consumer confidence missed markets expectations yesterday whilst declining new home sales figures led to further speculation that the Federal Open Market Committee (FOMC) could announce more quantitative easing today. The FOMC statement, press conference and economic projections will be the main news on the agenda today; with investors playing close attentions to the announcements.

Elsewhere, the Australian dollar performed poorly yesterday as quarterly as Consumer Price Index (CPI) showed inflation rose by much less than expected, hinting at a potential interest rate cut next month. Canadian retail sales also fell by more than anticipated in February. Late last night, the Reserve Bank of New Zealand's official cash rate decision will be announced and the governor of the Bank of Canada will be speaking.

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