GBP/USD Performance Chart as at 3:30 a.m. Singapore time, 27/04/11

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HISTORICAL DETAILS 

% Change

1 Wk 0.83%

1 Month 2.54%

3 Months 3.23%

6 Months 3.82%

1 Year 6.98%

 

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

Against the dollar today, the pound pushed further away from the $1.6600 high hit last Thursday, its strongest since late 2009. London's financial markets were closed on Friday and Monday for the Easter holiday. However, sterling managed to hover above a session low of $1.6437 as Middle East names were seen covering short positions after pushing the pound down in early trade. [2] While traders say a weaker-than-expected British GDP reading on Wednesday could leave the pound vulnerable to selling, some said sterling demand by a UK bank related to an upcoming dividend payment may offer a good chance to pick up the pound on the cheap. The pound has been boosted in the past few weeks by a broadly weak dollar, but analysts say that support may crumble if a reading of first quarter GDP due on Wednesday shows the UK economic recovery remains patchy. A Reuters poll forecasts UK GDP rose only 0.5% in January-March from the previous quarter, after a surprising 0.5% contraction in the last three months of 2010. [3] A weak GDP reading may completely take off the table the possibility of a May rate rise and seriously question whether rates will rise in August. Paolo Palazzi-Xirinachs, Chicago

 

Notes: Source: [1] Reuters (26 April 2011), [2] Bloomberg UK (26 April 2011), [3] Reuters UK (26 April 2011), [4] Sydney Morning Herald (26 April 2011), [5] Wall Street Journal (26 April 2011). Chart data supplied by Bloomberg.