Pound struggles despite data

28 July, 2011


Yesterday’s US employment data (non-farm payrolls) was bad news for the US economy – but there was little improvement in the exchange rate. This is a worry for anyone needsing to send money to the USA, as normally a negative reading in the States would improve the exchange rate. Has the Pound reached the top for the moment?

In Europe, ECB President Jean-Claude Trichet said after the Eurozone held interest rates, that the decision was because of the “appropriate” cost of borrowing at present, dashing hopes of a Eurozone interest rate cut which would be likely to improve the Euro exchange rate for Brits.

Speak to your Currency Index dealer for some more opinions, but it may be that the good run the Pound has enjoyed in the last 2 months, has come to an end for the moment.