Pound versus the Dollar

Exchange Foreign News

Pound continued to test resistance around $1.5970 versus the Dollar, after earlier touching a fresh six-month high, as speculation is mounting that policy makers will announce additional stimulus to boost the ailing U.S economy.

The Euro has retreated back towards $1.3150 against the Dollar this morning, as the global risk environment favoured the lower-yielding currencies like the U.S Dollar and Japanese Yen. The Australian and New Zealand Dollar fell for a second day.

The Pound also bounced back after 2-days of declines versus the Japanese Yen. The UK currency was up 0.4% against the Dollar last night, but Sterling has slumped back towards a low of $1.5776 this morning, after a gauge of UK house prices showed the first decline in prices for a year in July.

The Dollar traded close to a three-month low against the Euro yesterday, amid speculation that the Federal Reserve will tonight announce measures to keep borrowing costs at ultra-low levels over the coming months, as the economic recovery shows signs of losing steam. The U.S currency has also lost ground in anticipation of a report this afternoon, which is expected to show that productivity growth slowed in the second quarter.

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