Pound hit high with improved retail sales

 

Pound sterling strike high against euro after the retail sales has picked up its pace in the economy. It created positive hopes after the sluggish performance of economy in winter. The rise in the Pound Sterling against euro from € 1.188 to € 1.195 was also due to prediction of Market forces that bank of England was prone to increase the interest rates in upcoming days.  The retail sales volume was improved by 1.4% after a week performance reported in the preceding months. The rise in the Pound Sterling was also due to the speculative activities in the market. 

Pound strikes a year high record against dollar

 

Pound sterling was closed above $1.63 mark on 1^st March 2011 which is seen to be a record broken in 13 months. Economist has given their views that UK has the tendency to raise rates faster than US. Increase in the rates were also influenced by the high rise in inflation rates which has caused the retail sales volume to decline in December which was also reported to decline due to climatic conditions.

Surprise hike in property market

 

Recent data revealed an unexpected increase in UK house prices, which has perhaps contributed to rise the pound at $1.633 earlier today being the strongest since January 2010. Traders in the currency market were expectant to buy pound from property markets.

Weak stock performance with increase in oil prices

 

Stock prices have suffered a decline as the oil prices in international market rises. The decline of stock performance and increase in the oil prices can totter the economic position which was picking up pace. Since last week reported figures oil prices has hikes to about 13% due to uproar across North Africa and Middle East. This hike has caused per gallon price of oil to be increased to 20 cents.

Overseas aid to be targeted healthier

 

International Development Secretary Andrew Mitchell has announced that overseas aid will be targeted to more deserved areas after it has been cut off from 16 countries which have been receiving UK funds. The countries which will be experiencing a cut off in the aid budget are Russia, China, Angola and Vietnam. These aid funds will be targeted more to the war affecting countries like Afghanistan and Somalia. British taxpayers were not willing to fund for agencies like United Nations Industrial Development Organization, UN-Habitat, the UN agency the international Labor Organization and the UN International strategy for Disaster Reduction as they were reported of poor performance. Aid funds will be more targeted towards the weak sectors of the economy like for ‘Save the children’ campaign where taxpayers are relieved that their funds have been utilized in the sectors for productive outcomes.

Retail bond market was praised by state minister

 

The London Stock Exchange’s Order book for Retail Bonds (ORB) was appreciated for making the bond market reachable for the retail investors and making it as simple as trading in the stock market. It has widened the horizon of investment by giving investors opportunity to invest in the UK firms in varying ways.