Currency Exchange Rates - Pound Sterling Dollar GBP USD down on CPI figures.

April 12, 2011 - Written by John Cameron

STORY LINK Currency Exchange Rates - Pound Sterling Dollar GBP USD down on CPI figures.

The Pound Euro exchange rate (GBP/EUR) is 1.12603, down from previous end of day 1.13280. The Pound Dollar exchange rate (GBP/USD) is 1.62937, down from previous daily 1.63390. The Pound NZ Dollar exchange rate (GBP/NZD) is 2.07323 down from previous daily 2.08871.

The Pound Sterling has plummeted against all the major currencies this morning, reflecting the surprise drop in inflation announced in a report from the Office of National Statistics.
UK inflation was described to have dropped by 0.4% from 4.4% to 4%.

In relation to the Euro exchange rate, this has pushed Sterling to the lowest level in 7 months, and is under the 38.5% Fibonacci retracement level of 1.1270.

Adam Solomon, an exchange rate expert at Tor FX says:

"The key driver for the latest fall in the value of the British Pound is the latest inflation readings from the UK economy.

The unexpected 0.4% decline in the annual rate of inflation has curbed expectations of a near-term increase and pushed the Pound to the lowest level in seven months against the Euro."

In commodity markets, Simon Denham from Capital Spreads said:

"Gold and oil saw a bit of profit taking yesterday and that’s continuing into this morning, with gold ten bucks lower at 1457 and Brent nearly a buck worse off at 123.20. Risk appetite for crude this morning has been dented somewhat by Goldman Sachs who recommended taking profits in the black stuff. "

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