GBP/USD Performance Chart as at 3:30 a.m. Singapore time, 28/04/11

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HISTORICAL DETAILS 

% Change

1 Wk 0.73%

1 Month 3.36%

3 Months 3.77%

6 Months 4.82%

1 Year 6.93%

 

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

Sterling rose nearing its highest in 17 months versus the dollar, as data showed the UK economy grew 0.5% in the first quarter, confounding speculation about a weaker number. The pound could test a recent high of $1.6600 now that the US Federal Reserve, in an announcement today, signaled that monetary policy will remain loose, putting the US currency under pressure. The UK GDP data was in line with the Reuters consensus forecast, but traders said the market had positioned for a weak reading which drove investors to cut short positions initiated before the data was released. [2] Analysts said the GDP data was probably too weak to prompt a Bank of England rate rise as soon as next month, though the data still left open the possibility of a rate hike in the summer. Traders said offers just ahead of $1.6600 limited sterling's gains and it pulled back a little after hitting a high for the day of $1.6582. A move above $1.6600 would mark its highest since early December 2009. The UK recovery remains fragile, however. Further data showed UK mortgage approvals fell by 10% year-on-year in March. Paolo Palazzi-Xirinachs, Chicago

 

Notes: Source: [1] & [2] Reuters (27 April 2011), [3] Sydney Morning Herald (27 April 2011), [4] Wall Street Journal (27 April 2011). Chart data supplied by Bloomberg.