Pound Recovers from Slump on Bad Fundamentals
The Great Britain pound currently attempts to recover from the losses caused by today’s macroeconomic reports. Virtually all data today was unfavorable for the sterling as it signaled that the economic recovery is faltering.
The Consumer Price Index fell to 4.2 percent in June, while it was expected to stay at the May level of 4.5 percent. The trade balance deficit widened to £8.5 billion in May from £7.6 billion in April, instead of shrinking to £7.3 billion as economists predicted. Market analysts forecast the government report tomorrow will show that jobs growth in the UK slowed.
GBP/USD traded at about 1.5921 today as of 15:13 GMT after it earlier sank from 1.5905 to 1.5779, the lowest level since January 26. GBP/JPY fell from 127.64 to 126.64.
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Earlier News About the Great Britain Pound:
- GBP/USD Goes Higher on UK PPI (2011-07-08)
- BOE Holds Rates, Pound Suffers (2011-07-07)
- Services PMI Boosts Pound in Short-Term, Outlook Remains Negative (2011-07-05)
- Slower Manufacturing Growth Makes Sterling Weaker (2011-07-01)
- Sterling Trades Lower with Widening Current Account Deficit (2011-06-28)