Sterling slips as UK manufacturer optimism declines
Sterling slipped against the US dollar, as data showed that UK factory orders declined more than estimated and manufacturer optimism dropped to the lowest level in two years.
Sterling slipped against the US dollar, as data showed that UK factory orders declined more than estimated and manufacturer optimism dropped to the lowest level in two years.
Currency rates - July 28
EURO/GBP - 1.1368
US$/GBP - 1.6320
CHF/GBP - 1.3097
CAN$/GBP - 1.5494
AUS$/GBP - 1.4789
ZAR/GBP - 10.8861
JPY/GBP - 127.04
HKD/GBP - 12.7190
NZD/GBP - 1.8696
SEK/GBP - 10.3685
US$/EURO - 1.4347
Sterling also fell against the euro as the figures boosted the case for the Bank of England to keep interest rates on hold. Tuesday's GDP data showed that UK economic growth for the 2nd Quarter was poor and as a result the Bank is likely to leave monetary policy alone until at least next year.
In the euro zone, the single currency fell below $1.44/ €1 against the US dollar yesterday as stock markets reflected investor concerns over the US stalemate over debt ceiling negotiations. Germany's Finance Minister, Wolfgang Schaeuble also made comments objecting to Germany writing a "blank cheque" to help the euro zone rescue fund to buy bonds. The euro continues to remain strong against the pound on favourable interest rate differentials.
In the USA, the US dollar advanced from the lowest level since May against several other major currencies as investors looked to the US dollar as a safe haven currency, although this could be shortlived. Most market participants believed the deficit reduction proposals being discussed in Congress fall short of the required budget cuts necessary to avert a U.S. debt downgrade by ratings agencies.
Elsewhere, the Australian dollar made large gains against the US dollar as consumer prices rose more than forecast. In addition, the ultra safe haven of the Swiss franc continued to make ground against the US dollar as safe haven demand for the currency kept it in demand.
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