GBP/USD Performance Chart as at 3:30 a.m. Singapore time, 19/04/11

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HISTORICAL DETAILS 

% Change

1 Wk -0.91%

1 Month 0.38%

3 Months 1.47%

6 Months 2.02%

1 Year 4.52%

 

52 WEEK

High 1.6428

Low 1.4231

 

BLOOMBERG MEDIAN FORECASTS

Q2 2011 1.61

Q3 2011 1.63

Q4 2011 1.63

Q1 2011 1.65

 

DAILY DETAIL

Sterling trimmed losses versus the dollar after an outlook downgrade to the US sovereign rating put the brakes on the greenback's rise, but the pound may struggle as investors price out the possibility of a UK interest rate rise next month. The pound fell around half a percent on the day to a session low of $1.6232, but the UK currency clawed back after ratings agency Standard & Poor's cut its outlook on its triple-A rating of US sovereign debt to negative. The S&P announcement pushed sterling to $1.6320, near the day's high of $1.6329 hit earlier in the day. [2] On the day, the pound traded 0.3% lower against the dollar, and analysts said sterling may face selling pressure in the near- to mid-term if investors continue to trim long positions in the currency. A lower-than-expected reading of UK inflation last week has prompted investors to take bets off the table that the Bank of England will raise rates from a record low 0.5% next month. Short-term interest rate markets show the possibility of a 25 basis point rate rise is priced in for October or November Just a few weeks ago, markets had been pricing in a rise in May. Paolo Palazzi-Xirinachs, Chicago

 

Notes: Source: [1] Bloomberg News (18 April 2011), [2] Reuters UK (18 April 2011), [3] Sydney Morning Herald (18 April 2011), [4] New York Times (18 April 2011). Chart data supplied by Bloomberg.