Pound to US dollar rates held firm over the days trade as the FED economic outlook last night was more upbeat than previous months. As reported yesterday this was expected to give the dollar a boost against the pound but with the UK outlook looking rosier with a string of above forecast data releases recently it has made little ground.
Over the day after sterling initially spiked as European trade opened the rates have slowly trickled down to current levels around 1.57. Trading has ranged within a slim half cent margin all day.
Against the antipodean dollars, Aussie and New Zealand, the pound has gained all day. The 1.5 mark has been reached against the Aussie having been trading in the 1.4′s since January and for the Kiwi we heading up towards 1.94. The main driver against these type of riskier commodity lead currencies is investor sentiment which is lower over worries about European debt. Other commodities like gold and oil are also trading lower, with gold down 3% today alone.
There is a raft of Australian data out overnight which could affect the dollar, coupled with the fact that limit orders for GBPAUD at 1.5 will have been triggered which could mean the rise is short lived. Anyone with an Aussie or Kiwi requirement might be wise to lock in while the rates are still high.