Dollar falls but pound rise: 6/8/2010
The Great Britain pound rose versus the greenback on the report from the US about more than expected job losses. The sterling fell against the euro and the dollar as the data from the UK itself hasn’t gave many reasons for optimism. The weak US payrolls data allowed other currencies, including the sterling, to rally against the dollar. The reports from Britain were also unfavorable, though, pushing Britain’s currency down versus its other major counterparts. In June the manufacturing output expanded by 0.3 percent, the same pace as in May, while the experts predicted the 0.5 percent growth. The industrial production decreased 0.5 percent in June, compared to 0.7 percent growth in the month before and the median estimate of 0.3 percent increase.
The pound was supported previously by the hopes the actions of the Prime Minister David Cameron to rein the budget deficit wouldn’t hurt Britain’s credit rating. Now the currency is starting to feel the pressure of the uncertainty about the future decisions considering the interest rates, as the central bank’s policy makers remain split on their opinion about this matter.
GBP/USD rose from 1.5895 to 1.5960 as of 17:12 GMT. EUR/GBP went up to about 0.8312 and GBP/JPY fell from 136.45 to 136.12.
If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.