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The site is hosted in the UK so I guess Google is putting more emphasis on IP localisation since the last update. anyone else noticed this ?
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Yes, I've heard quite a few people mention that they're now localizing traffic. So, since your site is hosted in the UK you are probably going to get more UK visitors--since your site is probably now "outranking" other sites hosted in the USA.
What I would do is change your prices to Pounds (if you can accept UK orders) and open up a new site (hosted in the USA) that has US Dollars. That way you would mazimize your current rankings.
Or, switch your hosting company so the site is hosted in the USA.