The Pound Dollar exchange rate is 0.636% higher on the hour with 1 GBP = 1.5349 USD at 1:15 PM in London.
The Pound Euro exchange rate is 0.125% lower with 1 GBP = 1.1965 EUR.
The Pound Australian Dollar exchange rate is 0.340% higher with 1 GBP = 1.7353 AUD.
"The British Pound has rallied to a fresh two-month high against the U.S Dollar this morning, led by an overall improvement in risk appetite, as stocks gained for the seventh time in eight days, reducing the demand for lower-yielding currencies like the Dollar and the Japanese Yen," reports Adam Solomon at foreign exchange brokers Tor FX.
Solomon also points out that it is somewhat surprising that UK stocks were little changed after JP Morgan Chase & Co reported better-than-expected earnings data.
JPMorgan Chase said profit rose 76%, which quashes some concern from the Federal Reserve that economic growth is slowing in the U.S and in China.
The British Pound has also rallied strongly against the majority of the 16 most actively traded currencies, including Australian Dollar and Swiss Franc. The UK currency has remained largely subdued against the Euro though, as investors await the results of European bank stress tests released on the 23rd July.
"There is an apparent lack of direction on GBP EUR, as the pair trades between a tight range between 1.1950 - 1.2000. The Euro has gained ground against the Pound and the Dollar this morning, as Spain attracted greater demand in its bond auction than expected, generating some optimism that the struggling peripheral nations in the Euro-zone will be able to fund their own deficits, without emergency assistance from the IMF and European Union," says Solomon.
The Euro rallied against the Dollar and the higher-yielding currencies declined along with Asian stocks. Australian exchange rates included.
Goldman Sach Group Inc have today lowered their forecasts for EUR USD, as concerns mount over the outlook for the U.S economy and "reasonably solid" European economic data.
