Pound gains against the dollar
Sterling surges as government moves to sell bank stakes
The pound has gained two cents against the dollar in early morning trading after news that the UK government is in talks with investors to sell stakes in part-nationalised banks, says London foreign exchange trader Currencies Direct.
Mark O’Sullivan, director of dealing at Currencies Direct, says, ‘Following talks that the UK government may look to sell off some of its debt obligations with the UK banks, sterling has surged overnight and is up two cents against the dollar at $1.5465.
‘The ongoing stock market rally is also a positive for sterling and we are now seeing the pound trade at a level that has not been seen since December 2008 – a long way from the lows of $1.34 to the pound back in January.’
He adds, ‘There is no doubt that the UK economy is still in a bad way, but currency markets are taking the view that sterling will outperform both the dollar and the euro going forward, especially when you take into consideration the economic numbers coming out of Europe, which still indicate a long, prolonged slump in the euro zone.’
Advertisement
Latest news
Market update (AM): Financials lead gains in morning trading 12 March 2010
Financials and insurance stocks led the major gains this morning (12 March), with Royal Bank of Scotland and Lloyds Banking leading the chasing pack.
- Market update (PM): Petrofac shines after upgrade 11 March 2010
- Market update (AM): Argos takes care of it for HRG 11 March 2010
- Market update (PM): Investors take advantage of Gulf bailout 10 March 2010
Recommendations
Top Ten Life Funds
| Fund | Offer | 1y | 3y | 5y |
|---|---|---|---|---|
| UBS Life Structured Credit A | 85.39 | 230.1 | n/a | n/a |
| Skandia Finland FIM Russia | 11.36 | 185.6 | -3.8 | 79.2 |
| Skandia Finland JPM New European | 1.96 | 140.9 | -9.1 | n/a |
| Canlife SVM UK Opportunities LS4 Acc | 103.40 | 133.4 | -13.8 | 35.5 |
| Skandia Finland Alfred Berg Ryssland | 0.86 | 132.8 | n/a | n/a |
| AXA JPM New Europe | 193.80 | 132.1 | n/a | n/a |
| Zurich Sterling JPM New Europe | 258.80 | 130.6 | n/a | n/a |
| L&G SVM UK Opportunities | 100.32 | 130.0 | -16.4 | n/a |
| Skandia JPM New Europe | 253.10 | 128.8 | 18.2 | 98.1 |
| Merch Inv Sanlam Global Financial S6 | 106.50 | 126.4 | n/a | n/a |
Share dealing in depth
The Share Centre to assist Wills & Co clients 17 February 2010
The Share Centre has confirmed it will take over management of the 11,000 accounts from Wills & Co stockbrokers after the company announced it was closing.
- UK exits recession but investors remain cautious 26 January 2010
- China's cap ad call triggers commodities sale 20 January 2010
- Tradefair gears up for CFD launch 19 January 2010
Guides
Sterling is in for a rough ride 9 March 2010
Stuart Frost, co-fund manager of the Threadneedle Absolute Return Bond Fund, comments on the outlook for Sterling.
- Witan to offer ISA promotion 12 January 2010
- Cheap and cheerful sharedealing 13 November 2009
- Outsmart the markets 8 September 2009
Special Offers
- Annual report service
Free access to annual reports and other information
on selected companies


