Foreign exchange rates 'remain flat'

Foreign exchange rates between the US dollar and sterling, two of the biggest world currencies, have remained relatively stagnant this week.

Analysts have noted a small drop in the US dollar as employment data did little to beat expectations.

The UK currency is unlikely to see any major changes when British data, including the Royal Institute of Chartered Surveyors' house price survey and British manufacturing output, is published this week.

According to currency analysts, the main factor affecting the British currency is the forthcoming general election.

BNYM strategists wrote in a note to Reuters: "After last week's shock narrowing in the UK election polls, the readings this Sunday simply confirmed that it remains a close run fight between the two largest parties."

It is thought that this political sentiment will continue to weigh heavily on the pound.

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Posted by Sarah Pitton