Currency market update 28th April 2006
US dollar continues fall, Sterling gains some ground on Euro
Sterling hit a new 7-month high against the dollar and rose to the day's highs against the euro on Friday after the release of a strong UK consumer confidence survey.
The Gfk consumer confidence index gave a reading of -4 in April, up from -7 in March, and above the forecast -6.
Earlier on Friday, the National Institute of Economic and Social Research revised up its growth forecast for 2006 to 2.5 percent from 2.3 percent predicted in January.
It has come in a bit stronger than expected, so it's been a reasonably bullish environment for sterling, but personally I am a bit more cautious than that, we are still in the rate cut camp, said James Knightley, economist at ING.
Sterling rose as far as $1.8079 by 0942 GMT, up a third of the percent on the day.
It also gained slightly to 1.4390.
In New York the dollar slipped on Friday, extending losses against a basket of major currencies into a sixth session after a report showing robust U.S. economic growth did little to overturn the market's view that interest rates are close to a peak.
The dollar edged lower after data showed the U.S. economy grew at a steady clip of 4.8 percent in the first quarter -- the fastest pace in two and a half years and broadly in line with expectations -- but inflationary pressures in the data were softer than expected. The euro rose to $1.2578, up from $1.2565 where it was before the data.
Interbank rates
GBP/EURO ? 1.4380
EUR/GBP ? 1.4430
EUR/USD - 1.2544
GBP/USD ? 1.8081
USD/GBP - 1.8153
GBP/AUD - 2.3870
GBP/NZD - 2.8533
GBP/CAD - 2.0246
GBP/CYP - 0.825
GBP/AED ? 6.6340
GBP/ZAR ? 10.9300
GBP/CHF ? 2.2530
GBP/PLN ? 5.545
GBP/CZK ? 40.30
GBP/THB ? 67.45
Toby is a senior FX manager who writes daily articles concerning the Euro Pound currency exchange markets and how this affects the Spanish property market.
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