Currency update, August 27: sterling benefits from investor confidence

Published: 27 August, 2010

Sterling benefited from improved risk sentiment as gains in stock markets gave investors the confidence to seek higher returns elsewhere.

EURO/GBP - 1.219
US$/GBP - 1.552
CHF/GBP - 1.590
CAN$/GBP - 1.643
AUS$/GBP - 1.749
ZAR/GBP - 11.367
JPY/GBP - 131.40
HKD/GBP - 12.078
NZD/GBP - 2.203
EURO/US$ - 1.272

HUF/GBP - 345.60

Sterling reached $1.5545/£1 against the US dollar as the FTSE 100 gained 1% through the day. Today sees the release of GDP data in the UK and a surprise to the upside could benefit sterling.

The Euro was well supported against sterling and the US dollar on Thursday as consumer confidence figures pushed German shares higher. Euro zone lending still remains in a fragile situation with data showing that there has been a growth in loans to euro zone households whereas loans to companies have declined by 1.3% over the year.

The US dollar continues to move with investor risk appetite and today the focus will be on GDP data as well as the Federal Reserve Chairman, Ben Bernanke's speech at the central banker summit in Jackson Hole.

Commodity linked currencies also performed well on the back of improved risk sentiment as both the Australian and Canadian dollars made gains against the US dollar.

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