Written by Will Peters Wednesday, 25 May 2011 11:16 The Pound traded higher against the U.S Dollar, Australian Dollar and Canadian Dollar this morning. The pound euro exchange rate is 0.614% higher with 1 GBP = 1.1539 EUR. The pound dollar exchange rate is 0.0272% higher with 1 GBP = 1.6228 USD . The pound to Australian dollar exchange rate is 0.902% higher with 1 GBP = 1.5463 AUD. The Pound declined against the Euro and the U.S Dollar earlier this morning before a report that showed UK gross domestic product expanded 0,5% in the first quarter, matching initial estimates earlier in the month. A rise in UK exports, following the improvement in manufacturing and a weak Pound, helped propel the economy out of contraction and outweighed the biggest slump in business investment in two years. Exports were up 3.7% in the quarter and net trade was 1.7% of gross domestic product. However, consumer spending slumped 0.6%, reflecting the government spending cuts that began at the start of the year, and corporate investment plunged 4.4%. The report fell in line with preliminary forecasts and the Pound was largely unchanged following the data. Adam Solomon, an exchange rate analyst at Tor Fx says: "The UK currency pushed back above 1.15 versus the Euro, after the Irish Prime Minister Enda Kenny said that the European Central Bank should cut interest rates and asked for clarity from EU leaders. "The Pound’s strength may stem from a diversification away from the Euro and into Sterling, as concerns grow over the sovereign crisis and the threat of contagion to other high-deficit regions. "The Pound also traded higher against the U.S Dollar, Australian Dollar and Canadian Dollar this morning, but given the inherent weakness in the UK economic outlook, Sterling sellers may want to consider taking advantage of the current rate or at least placing a stop order to protect against a reversal."

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