Currency Exchange UK

 

Weaker Dollar pushes Sterling Up

Weaker Dollar pushes Sterling Up

A broadly weaker US dollar pushed the pound up 0.3% to $1.5038 on Tuesday, although political uncertainty continues to weigh on sterling.

With the general election in Britain expected in early May, many currency traders are eyeing the political data with concern as no clear winner is evident between Labour and the Conservatives.

Live television debates are beginning to air, yet so far no party has captured any major increase as a result. 

Currently, the Conservative party still holds a small lead over Labour but most investors still expect a ‘hung’ parliament with no clear winner.

Today there will be a final announcement regarding fourth quarter GDP figures (end of 2009) and some hope that there will be evidence of a slight improvement.  This, currency traders believe, might push the pound up more.

The current figures show that GDP growth was 0.3%, up from the original estimate of a tiny 0.1%.