Forex News

The pound gained versus multiple currencies today and touched the highest rate in 2 months versus its main rival, the euro, as Bank of England officials affirmed that growth is returning to U.K.’s economic outlook and stimulus measures will be lifted on a foreseeable future.

London stocks had a very positive performance today attracting traders to bet on pound-priced assets after the Office for National Statistics posted a report that indicated an increase in the nation’s inflation for the first time in 8 months, suggesting that U.K.’s economy is walking its way out of recession, providing support for the pound to gain in the intraday even versus the U.S. dollar, which had an extremely positive performance today due to market’s risk averse aspect today. Bank of England officials affirmed that multiple reports featuring employment data and consumers surveys are giving solid evidences that U.K.’s economy stopped to deteriorate and is finally having its late recovery.

The perfect combination to push up the pound rates today came with the Bank of England statements added to the inflation numbers, providing enough signals for traders to bring capital back to the British Isles, which had previous months of extreme unattractiveness. If the recuperation of British economic conditions follows, the pound is likely to reach much higher levels, specially versus the euro.

GBP/USD traded at 1.6777 as of 16:43 GMT from a previous rate of 1.6742 yesterday. EUR/GBP traded at 0.8840 from 0.8911.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the Great Britain Pound:

• British Pound High on Giant Airlines Fusion (2009-11-13)
• British Pound Down on BOE Unexpected Comments (2009-11-11)
• Pound Declines on Pessimistic Credit Rating (2009-11-10)
• Pound Up as Asset Purchase Program Changes (2009-11-05)
• Pound Remains Weak on U.K. Banking Outlook (2009-11-04)

This entry was posted on Tuesday, November 17th, 2009 at 6:50 pm and is filed under Great Britain Pound. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.