GBP/USD Performance Chart as at 3:30 a.m. Singapore time, 26/04/11

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HISTORICAL DETAILS 

% Change

1 Wk 1.41%

1 Month 1.33%

3 Months 3.64%

6 Months 5.59%

1 Year 7.96%

 

52 WEEK

High 1.6599

Low 1.4231

 

BLOOMBERG MEDIAN FORECASTS

Q2 2011 1.61

Q3 2011 1.62

Q4 2011 1.63

Q1 2011 1.65

 

DAILY DETAIL

The pound weakened and reached fresh lows in many crosses ahead of Wall Street opening this morning. The GBP/USD rose to test daily highs around 1.6550, failed to break above, reversed and fell more than 50 pips from the highs, reaching levels under 1.6500. The pair rebounded at 1.6490/95 and currently is hovering at 1.6510, 0.05% below today’s opening price. [2] With dollar interest rates seen taking a pivotal role in the market, players are looking to a news conference by Chairman Ben Bernanke on Wednesday after the central bank's two-day policy meeting to see how the Fed plans to seek an exit from its easy monetary policy. The Fed is widely expected to stick to completing its $600 billion asset purchase program in June but many market players think a backdrop of softer-than-expected economic data, weak housing markets and possible government austerity measures to tackle the budget deficit all make it more likely the Fed will keep its support for the recovery in place for some time. Many analysts believe the US. central bank will hold the size of its balance sheet steady by reinvesting maturing assets after June to avoid a passive tightening -- an issue that will likely be discussed at the April 26-27 meeting. Paolo Palazzi-Xirinachs, Chicago

 

Notes: Source: [1] Reuters (25 April 2011), [2] Bloomberg UK (25 April 2011), [3] Syndey Morning Herald (25 April 2011), [4] Wall Street Journal (25 April 2011). Chart data supplied by Bloomberg.