The Pound Dollar exchange rate is 0.222% lower with 1 GBP = 1.5717 USD. The Pound Australian Dollar exchange rate is 0.002% higher with 1 GBP = 1.6034 AUD. "The British pound is continuing to climb higher against the euro despite news that the Irish parliament has successfully passed the 2011 budget," says Duncan Higgins, an exchange rate analyst at Caxton Fx. Passing the budget ensures that Ireland qualifies for its €85bn bailout, but there are still a number of steps to be taken in what is a lengthy approval process. Speculation yesterday that the budget would be passed failed to offer any real support to the ailing single currency with market concerns focused on the crisis spreading beyond Ireland’s borders. In addition, the pound received a boost as figures showed UK manufacturing output rose by 0.6% percent in October, twice as fast as the median forecast. However, this was tempered slightly by a fall in the wider industrial output measure. The improved manufacturing levels are consistent with a run of encouraging figures from the UK economy of late, which suggests that the threat of further quantitative easing is receding. Higgins says: "In trading this morning the British Pound is continuing to steadily creep higher, just short of 1.19 at present. "The data calendar is again relatively quiet with equities and developments out the eurozone likely to dictate direction, although German industrial production figures at 11:00 could cause a slight stir."

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