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The Exchange Rate between the pound and dollar has risen overnight, according to Forex.

The Currency broker reports that GBP/USD eventually traded to a high of 1.6273 yesterday before dropping off slightly this morning. The UK CPI data is released today, which may affect exchange rates.  "Expectations are for inflation to ease to 2.5% although there are some reports circulating this morning that there may be upside risks to this number following the Olympics and the rise in transportation costs," comments Forex. "If the CPI number surprises this morning it could bring in to play a break of the April high of 1.6304."

The exchange rate between the Euro and US Dollar, meanwhile, has consolidated around the 1.3100 figure after pushing through the 1.3160 level yesterday. Spanish yields have ticked slightly higher in the last day or so which is weighing on the single currency this morning as well, adds the broker.  German ZEW will be the next focus for traders in EUR/USD and it's particularly important for risk sentiment in the market given the dreadful state of the US Empire State Manufacturing Index released yesterday. 

"AUD/USD has been sold off overnight after the release of the RBA Monetary Policy Meeting Minutes.  The central bank indicated that they stood ready to cut interest rates amid the deterioration in the global economic outlook, falling commodity prices and an overvalued Aussie dollar," concludes Forex.

The AUD/USD has fallen from 1.0530 to a low of 1.0427 this morning. As a result, GBP/AUD is up and currently trades at 1.5570.

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