Baby boom for British pound sterling as Emirates Windsor is born

We take a step back from focusing on the hourly charts and see the sterling remains well placed, some commentators have attributed this performance to the arrival of the royal baby.

Mark Deans at MoneyCorp sums up the recent performances by the British pound sterling (Currency:GBP) in the wake of the arrival of the Royal Baby:

"After a brief hiccup in the Far East, where the Duchess of Cambridge was wrongly associated with Labour, the pound moved ahead.  Between six in the morning, when the happy event began to unfold, and twenty to nine, when confirmation of the birth was announced, the pound strengthened by one US cent and half a euro cent.  

"Sterling also received some help from the prime minister's comment that the improving UK economy might allow the government to reduce taxes.  On the day the pound is ahead against all but the New Zealand dollar and the Swedish krona.  Its gains against the Aussie dollar, the Swiss franc and the Japanese yen might only be visible with a magnifying glass but a quarter of a euro cent and nearly a full US cent are not to be sniffed at.

"Many aspects of the Royal Baby's arrival have run in the smooth well-oiled way that people have come to expect of high-level state occasions:  The orderly corral of media types in Praed Street broadcasting live footage of the front of a building; the little framed announcement on the easel at Buckingham Palace; the birthing video on Kate's Facebook page.  But the name of the baby remains a secret.  

"Bookmakers fear a Clarence House betting coup.  Economists see it in a different way.  They believe that keeping the name under wraps will allow shopkeepers to unload non-specific "Royal Baby" memorabilia before the factories in China start cranking out the real stuff celebrating the birth of the future King George/ Caspian/ Frank/ Wenceslas/ Crimson/ Emirates.

"With two bites of the cherry, investors hope the wee chap will provide double the boost to the UK economy."