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By Michael Vaughan

GBP rates hit fresh five month highs against the USD today breaching 1.56 on the interbank for the first time since February. Sterling has benefitted from an increase in risk appetite following the European Bank stress tests last Friday. In these tests 91 banks were scrutinised and 7 were to fail, far better than many had expected. This has improved investor confidence and increased investor appetite for riskier assets over the normally safe haven of the US dollar. I personally think these gains may prove to be short lived and hence current levels to me look attractive.

By Leigh Smith

This morning, as previously mentioned, the ONS released the UK 2nd quarter GDP figures. Expectations were for an increase to 0.6%, figures showed GDP actually rose by 1.1% however and Dollar exchange rates have reacted accordingl.y Since the release at 9.30am GBPUSD rates have increased 0.6%, or 1.1% for the day, and GBPCAD rates have increased 1.25% for the day.

Next week however we have house price data for both the UK and US, so if you are looking at buying US Dollars it may be prudent to take advantage of the current high levels before any negative figures have the chance to take effect.

By Michael Vaughan

Sterling has had a strong start to the morning in anticipation of this mornings GDP data due for release at 09:30. Figures are expected to show 0.3% growth from last month bringing official UK GDP figures to 0.6% any deviation from this figure however is likely to cause large movements for both these pairings. I would expect heavy losses should figures be anything less than 0.3% and the reverse if figures are stronger. For those that are risk averse it may well be worth arranging your transfer prior to 09:30.

By Leigh Smith

Good news for anyone looking to buy US Dollars this morning, with sterling Dollar exchange rates increasing by 0.3% during the open of the day.

The Bank of England minutes are released in 20 minutes or so, so all eyes will be on how many, if any, members of the MPC have voted in favour of an interest rate hike. If more than June’s 1, Andrew Sentance, then expect to see the movements seen this morning continue through the course of the day and the sterling Dollar forecast looking slightly more promising.

By Michael Vaughan

GBP rates have had a very mixed day against the US and Canadian dollar finishing flat against the loonie and posting late afternoon gains against the greenback.

Sterling exchange rates initially posted losses in early morning trading following some po0r public finance data coming in at some £6 billion worse than expected. However the mornings trading was reversed by the afternoon showing the initial trend was probably caused by an overreaction to the figures and the market will now look to tomorrow’s Bank of England minutes for any news on future fiscal policy.