Currency exchange boost for sterling

The currency exchange rate for sterling has received a boost off the back of recent data.

Released by the Office for National Statistics today (July 23rd), the latest GDP figures revealed that the UK economy grew by 1.1 per cent in the second quarter of the year.

Sterling rose against the dollar following the news, to trade at $1.53 at 15:30 BST.

The pound was also up against the euro to buy �1.19.

Ian Stannard, currency strategist at BNP Paribas, told Reuters: "The data was expected to be good and it came in much better than expected, so sterling has got quite a boost from this."

However, Ian McCafferty, chief economic advisor to the Confederation of British Industry, has warned that growth is expected to be "modest" as the country moves towards 2011.

Mr Stannard agreed, suggesting that "in the longer term the picture is more bearish as some of the more forward-looking indicators on the UK have been declining recently, which could leave the pound vulnerable".

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Posted by Chris Barber