Despite last week’s the upward revision of the UK’s second quarter GDP to 1.2% from 1.1, sterling has suffered significant losses against the safe-haven currencies today. The pound is at a 5-week low against the US dollar as we see investors look for refuge due to on-going worries about the global economic recovery. Sterling fell as low as $1.5366 this morning after disappointing home sales figures from the US at the end of last week.
Of the safe-haven currencies, the Swiss franc seems to be the biggest winner today hitting a life time high against the euro (and 10-month high against sterling). The franc is up against the dollar and yen as continuing bad results from the states and government intervention to deflate the yen make the franc the low-yielding currency of choice.
In other news, going against the trend of safe-haven strength, the euro is up almost 1% against the pound as traders look to close out short positions at month end.
