Sterling Commentary
Tables & Charts

The British pound depreciated vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.5340 level and was capped around the $1.5470 level. Data released in the U.K. today saw March retail sales climb 0.4% m/m and 2.2% y/y while the March public sector net cash requirement grew to £25.8 billion from February’s level of £8.0 billion. Also, March public sector net borrowing printed at £23.5 billion, up from the prior reading of £9.7 billion. Additionally, March mortgage approvals grew marginally to 52,000 from the prior reading of 48,000 and the March M4 money supply expanded 0.1% m/m and 3.5% y/y. Minutes from Bank of England Monetary Policy Committee’s April meeting were released yesterday and they revealed a unanimous vote to keep interest rates unchanged and the central bank’s asset purchase plan unchanged at £200 billion. Traders are talking about a surge in the polls by the Liberal Democratic Party and the likely impact this will have on the 6 May General Election. Many political pundits believe the contest will result in a hung Parliament and some now say the general election is too close to call with Cameron perhaps still holding a slight lead over Brown. Cable bids are cited around the US$ 1.5140 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the £0.8630 level and was capped around the £0.8695 level.

SUPPORT   RESISTANCE

 
L1.       1.4855 1.5620 
L2.       1.4720 1.5880 
L3.       1.4585 1.6215