The pound euro exchange rate was 1.138% lower on the day with 1 GBP = 1.1472 EUR at 9AM in London. GBP EUR is now 0.04% lower at 1.148 at 9:45. The pound US dollar exchange rate was 0.708% higher with 1 GBP = 1.5645 USD. The GBP USD is currently 0.3% lower at 1.5621. The pound Australian dollar exchange rate was 1.074% lower with 1 GBP = 1.5730 AUD at 9AM. GBP AUD is now 0.45% higher at 1.5764. The above figures point to a swift change in fortunes for the British Pound. The Asian session saw equity markets playing catch up with the US and Europe who experience strong gains yesterday. This risk-off environment strongly favoured the likes of the more risky Australian dollar and euro at the expense of the British Pound. However the start of the European session has not been pretty. The FTSE 100 is sharply lower as yesterday's confidence dissipates. This has served to favour the pound and the safe haven US dollar. Looking ahead we see there are some figures coming out of the UK economy. On the data front, UK industrial production and manufacturing production are both expected to decline 0.2% for the month, and could give cable a bit of a lift if the print beats expectation. However, as always, the price action will be dictated by sentiment towards Europe. Chris Weston, Australia Also of note was comment from Bank of England member Mr Miles who said he wasn’t sure if the GBP75 billion of asset purchases will be enough, and he will assess this at future meetings.

Source