Currency exchange rate rise for sterling

The currency exchange rate for the pound rose on the back of positive data in the UK yesterday (August 26th).

Stronger than expected retail figures were published by the Confederation of British Industry, which revealed that the reported sales balance rose from +33 in July to +35 in August.

Furthermore, improvements in global equities helped to push the currency exchange rate up against the US dollar.

Daragh Maher, strategist at Credit Agricole, told Reuters in a note: "Sterling has been on the defensive against the dollar amid the rise in global risk aversion, perhaps more than was deserved and so it has capitalised on the overnight profit-taking in the dollar."

However, the news source did suggest that the pound remains vulnerable to any risk aversion, which may come from investors' concerns that a "US slowdown may fee through to the global economy as a whole".

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Posted by Eleanor Ward