Currency exchange trade 'cautious'

Currency exchange traders appear cautious ahead of the release of key data.

Sterling's currency exchange rate has shown little response to the Bank of England's interest rate decision.

The pound held steady against the euro ahead of the release of key US payroll data, which is leaving investors "wary of taking on fresh positions", Reuters reported.

However, the currency saw its foreign exchange rate fall as the UK's industrial output was revealed.

The Office for National Statistics published this morning (August 5th) showed an unexpected decline of 0.5 per cent in production levels between May and June this year.

Geraldine Concagh, economist at AIB Group Treasury in Dublin, told the news source: "UK data may give some direction, but really markets are likely to stay in tight ranges ahead of US non-farm payrolls which are really the major focus at the moment."

The pound was trading against the dollar at $1.58 at 10:00 BST this morning.

Trade against the euro stood at �1.20.

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Posted by Sarah Pitton