Pounds Dollars Exchange rates July 2008

Tuesday 29th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9943

Dollar continues its decline against majors.

US Dollar:
Yesterday saw the dollar weaken against its major rivals, after the US stock markets dropped as financial shares were sold off. The greenback was also feeling the heat from oil prices that crept back up towards $125 a barrel on futures markets, indicating that any measurable relief at the gas pumps for US consumers is still a way away. The dollar dropped over a cent against the pound, starting out the morning session at $1.9841 and then falling to over $1.9980. The fall against the euro was not as severe, but there was still a drop of over half a cent from $1.5680 to $1.5750. A currency strategist at Wells Fargo in New York commented that the dollars slight decline yesterday is mostly consolidation after last weeks gains, and the consolidation will probably last into he first half of this week until the US GDP on Thursday and nonfarm payrolls on Friday.

Data at 3.00pm: Consumer Confidence expected at 50 from 50.4 previous.
 

Friday 25th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9880

US Dollar:
The dollar continued its rally against the euro for a third day yesterday, as investors focused on weak data from Europe and shrugged off reports showing the US economy is sill sluggish. The dollar made a gain of 0.85% on the pound, from $1.9988 to hit $1.9818. Against the euro the gains were more modest as the dollar pulled back just under half a cent.

Reports showing Japanese exports declined for the first time in about five years, and some troublesome data in Europe, persuaded some investors that the rest of the world could soon be just as bad off as the US.

Existing home sales continued to fall in June and the median prices also dropped as inventories crept higher. Home sales slid to a 4.86 million annual rate, a 2.6% decrease from May’s unrevised 4.99 million annual pace. The number of US workers filing new claims for unemployment benefits soared last week, matching a three year high, suggesting no stabilization in sight for labour markets.

Data at 3.00pm: New Home Sales MoM expected at –1.8% from –2.5% previous.

Thursday 24th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9938

Oil falls again as signs of demand weakens, now trading at $123.89.

US Dollar:
We saw the dollar rally yesterday for a second day running, helped by falling oil prices and repeated talk about eventual need for US interest rate hikes to curtail inflation. The greenback took over a cent of the euro to trade from $1.5798 to hit $1.5667 this morning. Over half a cent was also pulled back on the pound as cable has dropped below the $2 barrier. As risk appetite increased, the dollar also advanced against low yielding currencies. The greenback reached a two-week high against the yen of Y107.97.

Fed bank districts said the economy slowed somewhat in June & July, according to the central bank’s beige book, a collection of anecdotes about the economy used by policy makers in deciding whether to change interest rates.

Data at 7.00pm: Existing Home Sales expected at –1.0% from 2%. Speakers: NY Fed’s Geithner at
3.00pm

Wednesday 23rd July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9920

Dollar stages a strong rally after comments by Plosser & Paulson + lower oil.

The dollar staged a strong rally yesterday as a top Federal Reserve official said interest rates may soon need to be lifted and oil prices dropped by about $3 per barrel. Philly Fed President Charles Plosser, a voting member this year on the Fed’s rate-setting committee, said “To prevent recent inflation from continuing to plague the economy, I believe the current very accommodative stance of monetary policy will need to be reversed.” This was then confounded by US Treasury Secretary Henry Paulson who repeated his mantra that a strong dollar is important for the nations interests, which provided more background support for the US currency.

From midday yesterday, the dollar roared back with vengeance against the pound, and five hours later finished nearly two cents higher at $1.9898. There was a similar move against the euro with a gain from $1.5942 to trade at $1.5756.

Data at 7.00pm: fed’s Beige Book. Speakers: Fed’s Mishkin at 2.00pm, Fed’s Kohn at 4.15pm.
 

Monday 21st July 2008 Interbank
G BRITISH POUND / US DOLLAR 2.0405

Dollar found support on Friday from some stability in stock markets.

US Dollar:
The dollar found some support at the end of the week after US stock markets and oil prices began to calm down following a week of turbulence. The stability in stock markets on Friday allowed a bit more risk appetite to filter back into currency markets, pushing down the low-yielding yen slightly against the euro and dollar. The dollar also found support from a better than expected earnings report from Citigroup.

Against the single currency, the rates are very range bound, staying in between $1.5880—$1.5810 for the last few trading days. Against the pound the dollar has made a slight move to break below the $1.99 levels, after poor economic data helped push cable down.

This week, data to look out for will be May House prices index on Tuesday, and last months home sales Thursday and Friday.

Data at 3.00pm: leading Indicators expected at –0.1% from 0.1% previous.

Friday 18th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9915

Dollar gains from weak oil prices.

US Dollar:
The dollar rallied across the board on Thursday, rebounding from sharp losses that accumulated since the start of the week, on a surge in US stocks, a drop in crude oil and bullish data from the beleaguered US housing market. One of the most oppressive problems in the American economy has long been viewed as oil prices. There is a considerable view that if you get oil prices lower, the US economy will recover, giving some much needed support to the greenback.

The dollar is now a full 2 cents better off against the pound from its worst point earlier in the week to trade at $1.9949, and just under 2 cents better off against the euro. US June housing starts unexpectedly surged because of a change to New York City building codes. Housing starts increased 9.1%, with economists expecting a drop by 1.2%. US Jobless Claims have risen slightly, but only retraced about one-third of the previous week’s drop, suggesting some stabilization in labour markets.

No data.
 

Thursday 17th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9996

Dollar finds support amongst Fed Chairman's comments & FOMC minutes.

US Dollar:
The dollar has now fought back most of the losses made at the start of the week, as we have seen the greenback make over a cent gain on the euro and close to a 2 cent recovery on the pound. Last nights comments by Fed Chairman Ben Bernanke highlighted the Fed’s position against inflation. He reassured Congress that curbing inflation remained the feds goal, even amid conflicting pressures from the deepening US downturn, worsening financial turmoil and rising American joblessness. This gave the dollar some support as it rallied against the majors.

The Fed minutes were released yesterday and it was revealed that monetary policy would likely remain on hold amid ongoing uncertainty about the outlook for the markets, economy and inflation.

Reading into the minutes, concerns about inflation and inflation expectations, policy makers anticipated that the next policy move could well be an increase in the funds rate, lending support to the dollar.

Data at 1.30pm: Housing Starts expected 965k from 975k previous, Building Permits expected at 970k from 969k previous.

Wednesday 16th July 2008 Interbank
G BRITISH POUND / US DOLLAR 2.0101

Dollar falls to record low against the euro & four month low against sterling.

US Dollar:
The greenback had a rollercoaster ride yesterday as we saw a cent and a half movement on EUR/USD and over a two cent move on cable. The dollar started to weaken off just after 9.30am yesterday and soon broke through the key $1.60 barrier on EUR/USD, to post an all time record high of $1.6037.

Cable also saw a large move as the dollar weakened off against sterling and broke through the key $2 barrier to hit $2.0155—a four month low. It seems a lot of stops were taken out when cable went through the $2 level, with GBP/USD soon sailing through the $2.01 level within about 20 minutes. This move was despite the fact that the eurozone and the UK saw poor economic data posted in the morning session, and seemed to be a move in the run up to key speeches to be addressed later in the afternoon in the US.

The dollars fight back came around 4pm as Fed Chairman Bernanke addressed the senate. Among various points raised were that he seemed to take back his prior statement that the risks are more skewed toward inflation and growth may start to look brighter going forward and also stating that the FOMC were to keep near term interest rates steady throughout 2008

Data at 1.30pm: CPI YoY expected at 4.5% from 4.2% previous, 2.15pm: Industrial Production expected at 0.0% from –0.2% previous. Speakers: 3pm—Bernanke. 7.00pm: Fed Minutes

Friday 11th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9771

New York Times report quotes sources as saying U.S government considering taking over Fannie Mae and Freddie Mac.

US Dollar:
The Dollar fell against the Euro yesterday, after Federal Reserve Chairman Bernanke warned of “ongoing” financial market turmoil. “There is still a strong element of risk aversion directed at markets right now and its reflected in dollar selling,” said Steven Englander, head of G10 currency strategy in New York at Lehman Brothers.

San Francisco Fed President Janet Yellen further stoked the market’s concern and helped the Euro. She said the housing slump, financial market turmoil and surging commodity prices are the top concerns for U.S Federal Reserve officials and the combination presents a considerable challenge for policymaking.
 

Thursday 10th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9761

Buck down against rivals on tough talk from ECB & ongoing financial concern.

US Dollar:
The dollar fell back yesterday versus its rivals on tough talk from the European Central Bank and ongoing financial market concerns. The dollar has lost over one and a half cents on sterling, from $1.9680 at a low yesterday to hit $1.9838 in this mornings trade. Against the euro there was a cent loss as the greenback was trading at $1.5660 yesterday, to hit $1.5760 at a high this morning. Adding to the dollars bane, Fitch Ratings named Merrill Lynch at imminent risk of downgrade because of additional write-downs and the amount of debt due to mature in the next year.

Looking ahead to today, we will see figures released for Initial Jobless Claims which are expected to drop from last month. Most important though, is likely to be Federal Reserve Chairman Ben Bernanke’s testimony on financial market regulation around 4.00pm.

Data at 2.30pm: Initial Jobless Claims expected at 395k from 404k previous. Speakers at 4.00pm:

Bernanke & Paulson. 9.30pm: Fed’s Yellen.

Wednesday 9th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9687

Dollar rebounds as Fed indicates its ready to extend bank aid.

US Dollar:
The dollar rose yesterday versus its key rivals as the Fed announced it was ready to extend bank aid. Large investment banks will be able to access emergency cash from the Federal Reserve into next year if market turmoil persists. This gives a strong signal that the growing concern among policymakers that financial strain could continue for some time. The signal from Ben Bernanke, Fed Chairman, is likely to smooth Wall Street, in that it confirms Fed support for investment banks through the credit crises.

Us stocks rose on this yesterday and the dollar rallied against the euro and pound. The dollar was also helped as world oil prices fell to their lowest levels in nearly two weeks. This is the usual relationship we see play out where oil is being sold off, and the dollar is being bought.

Data at 1.00pm: MBA Mortgage Applications

Tuesday 8th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9770

The G8 summit has agreed to set a global target of cutting greenhouse emissions.

US Dollar:
Yesterday the Dollar declined against the Euro after a sudden drop in U.S Stock Markets spooked currency investors and convinced them to take profits from last week’s rise in the greenback. San Francisco Fed President Janet Yellen said the fragility of the U.S housing market and bank systems could further “kink up” financial markets before an anticipated recovery in 2009. “Things could get worse before they get better” Yellen said. Headline inflation is likely to remain ”much higher” than she would like over the next few quarters until commodities prices level off.

12:30 GMT Fed Reserve President Bernanke speaks
 

Monday 7th July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9741

Dollar carries on its bullish trend from last week.

US Dollar:
The greenback managed to keep hold of its gains against the majors at the end of last week, despite the national holiday on Friday. The dollar has made over 2 cents on the euro, and over 2 and a half cents on sterling from this time last week.

The Euro/Dollar rally was started by the ECB’s comments on no more immediate future rate hikes, which was leading to the interest rate differential in that currency pair widen even further. Neither the eurozone or the US seem to want the gap to grow anymore.

Looking at cable, the pound isn’t looking to find any support from the impending bank rate decision in the UK later this week, so we may see more dollar strength further down the line. First support level is at $1.9705, with GBP/USD trading at $1.9735 this morning.

No data today. Speakers: Fed’s Yellen to speak at 5.00pm.

Wednesday 2nd July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9905

Better than expected ISM report fails to rally the dollar against the euro.

US Dollar:
The dollar declined modestly yesterday against the euro in the run up to the ECB meeting tomorrow. Against the pound, we saw the dollar make back some gains after poor data from the UK hurt sterling. The EUR-USD move was surprising as we did see better than expected ISM report on the US manufacturing sector, as oppose to the UK and eurozone which saw much worse reports in the same sector.

The continuing record high oil prices seen over the last few days have also depressed overall sentiment for the greenback.

Data at 3.00pm: Factory Orders expected at 0.5% from 1.1% previous. Speakers: Fed’s Misshkin at 5.00pm

Tuesday 1st July 2008 Interbank
G BRITISH POUND / US DOLLAR 1.9983

Oil surges to new record high of $143.67—tensions rise in the Middle East.

US Dollar:
The dollar is continuing to feel the pressure build on all sides as the majors reinforce their strangle hold on the greenback. The dollar looks set to test the $2 level against sterling which could come today, and the $1.60 level is not to far off on the euro.

With inflation pressure hitting a 16 year high in the eurozone, we may be seeing the $1.60 level sooner rather than later as the ECB looks set to raise interest rates later in the week.

In an annual report released yesterday, the Bank for International Settlements cast a gloomy prognosis for the global economy and inflation, particularly for the US citing turmoil in the financial markets –slowing real growth and temporary rising inflation. Data at 3.00pm: ISM Manufacturing expec at 49 from 49.6
 

How we can save you money

1. Unbeatable exchange rates On Pounds to Dollars Transactions
2. No commissions
3. FREE transfers over £5,000
4. Guaranteed secure transactions
5. Same day swift clearing of funds
6. Your personal senior FX broker

Fill out the form for further rates information

"We will attempt to beat any Pounds Dollars rate quote"