By TraderVox.com
Tradervox (Dublin) – The Sterling Pound has been up against the US dollar after falling yester after Fitch lowered UK’s rating outlook from stable to negative. Investors were looking for riskier assets and the Great Britain Pound provided that. Despite the negative investment out outlook ratings for the UK economy, Fitch also affirmed the country’s AAA ratings with warnings that this could change in two years if the situation does not change.
Fitch indicated the UK was in a good position for now but lacked ability to absorb further economic shocks from the euro region. This is not necessary a bad report since UK’s triple A rating was confirmed. The positive reports from the US have continued to push the dollar upward against major currencies as traders look for safe haven.
The sterling pound opened trading at 1.5675 and rose to 1.5844 at 13.39 GMT. The numerous positive reports from the US had negative effect on the Dollar against the GBP as investors decided to buy riskier assets moving from the dollar.
Reports from US show that jobless claims dropped by 14,000 for the week ending March 10 to reach 351,000. Another report from the New York Federal Reserve Bank indicated that the Empire State Manufacturing Index rose from 19.5 to 20.2 representing a fourth straight increase. Philadelphia Fed Manufacturing Index edged higher from 10.2 in February to 12.5 in March. Additionally, US wholesale prices increased to 0.4 percent, the fastest increase registered in five months. It rose from a previous rate of 0.1 percent.
The sterling pound has been on a bullish run today against the dollar as investors look for riskier assets. However, the market has been confined to the 100 and 200 day moving averages since February. The resent breakout to 1.5844 may be construed to be a reaffirmation of a bullish outlook for the GBP.
Some of the reports that are expected to change the market during the New York trading session include the US Consumer Price Index which measures the change in the price of goods and services from consumer’s perspective and industrial production Index which is expected to increase by 0.4 percent.
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