GBP/USD Performance Chart as at 3:30 a.m. Singapore time, 04/05/11

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HISTORICAL DETAILS 

% Change

1 Wk 0.04%

1 Month 2.35%

3 Months 1.83%

6 Months 2.79%

1 Year 7.95%

 

52 WEEK

High 1.6747

Low 1.4231

 

BLOOMBERG MEDIAN FORECASTS

Q2 2011 1.63

Q3 2011 1.63

Q4 2011 1.64

Q1 2011 1.65

 

DAILY DETAIL

Sterling fell against the dollar after disappointing UK manufacturing data prompted investors to push back forecasts of a UK interest rate rise. The UK Markit/CIPS manufacturing PMI headline index fell to 54.6 in April, its lowest since September, from a downwardly revised 56.7 in March and was well below the 56.9 consensus forecast in a Reuters poll. It would almost seem as if investors were looking for an excuse to sell sterling this week, and the PMI figures today certainly provided that. You have drags on growth, which is not a very good recipe for sterling strength. The CBI distributive trade survey, also out on today, added to signs of a grim outlook for UK economic recovery. British retail sales showed solid annual growth in April, but stores planned to cut orders with suppliers in anticipation of a weak May. With the weak data, the interest rate futures market showed investors are not fully pricing in a 25 basis point rate rise in UK interest rates until November or December at the earliest. [2] Paolo Palazzi-Xirinachs, Chicago

 

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