By Colm Gilhooly

With markets more positive about global growth forecasts the Dollar has begun to slide as risk appetite grows and the greenback has been losing its “safe-haven” status.  The pound rose to a 10 month high against the USD on the back of profit announcements from the UK banking sector, and much better than expected figures for UK manufacturing.

The banking profit news caused a surge in share prices on the FTSE and Sterling benefitted as a result.  Although the manufacturing growth was only modest, it was much better than the forecast contraction and is the first positive reading since March 2008.

The pound was assisted against the Dollar by rising oil costs on the back of global growth and demand forecasts.  With a raft of data out this week, including the Bank of England interest rate decision, core consumer personal consumption in the US and the non farms payroll data on Friday it will be interesting to see if Cable will break through the 1.70 and beyond.