Pound Hits Resistance as Exchange Rates Falter

  • 15 years ago
  • Uncategorized

The Pound has failed to gain on its recent rally this week, showing no further improvement against most major currencies.


This comes despite negative data elsewhere, particularly in the USA, where yesterday’s non-farm payrolls (the main monthly measure of job creation in the States) came out far worse than expected. Usually, we would expect to see the Dollar weaken significantly against the Pound, but the rate has stayed around the 1.63 level.


The US economy shed 467,000 jobs in June compared to 345,000 in May.


Against the Euro, rates are stuck around 1.16, after the European Central Bank yesterday held interest rates and stated that they are “appropriate” in the current climate, dashing hopes for an interest rate cut which may have improved Euro exchange rates once more.


Further afield there is not much good news either, as exchange rates against the Australian, New Zealand and Canadian Dollars have all dropped slightly.


Senior Broker Simon Eastman, of Currency Index, said “buyers of overseas property have been waiting for the Pound to improve before they secure their exchange rates. However, we may now have seen the top of the market for the moment, as the Pound consolidates what have been much quicker gains than expected”.


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