The pound sterling (Currency:GBP) is looking strong on the global FX space today - a sell-off on the equity markets has boosted demand for safe-haven assets such as UK gilts which in turn boosts demand for the pound.

The pound euro exchange rate is 0.22 pct higher on a day-to-day basis at 1.2577 at 10:00 in London.

The pound dollar exchange rate is 0.03 pct higher at 1.6184.

The pound Australian dollar exchange rate is 0.24 pct higher, GBP/AUD is at 1.5623.


Yesterday the Pound declined to the lowest level in almost two weeks against the U.S Dollar, amid concerns that Euro-zone leaders are moving too slowly to end the debt crisis.

The concerns led to a decline in risk sentiment, which saw support for the higher yielding currencies erode and the Dollar rally across the board, alongside the Yen. The Pound rose above 1.56 against the Australian Dollar and further gains may be likely in the short-term.

The UK currency encountered resistance in the region of 1.6260 against the Dollar and slipped towards 1.6150 over-night.

The latest BBA mortgage approvals data was slightly stronger-than-expected, but failed to have a major market impact, as attentions focused on developments in the Euro-zone.

There will be market speculation that the only way for the UK economy to consolidate the budget situation will be through a sharply weaker currency.