Pound Profits from Fears About Future of Eurozone
The Great Britain pound gained today as Forex traders quickly lost belief that the bailout for Spain would resolve the countries problems. Fears returned to the FX market and pound again was considered a refuge from Europe’s woes.
Fitch Ratings said that countries of the eurozone face a risk of credit rating downgrades. Edward Parker, the Managing Director of the rating agency, even stated that the currency union may break up if there will be “no light at the end of the tunnel soon”. The comments helped the pound’s return to its role as haven from problems of the euro-area.
The sterling also got boost from domestic fundamentals. Royal Institution of Chartered Surveyors reported that its house price index rose to -16 in May from -19 in April. The actual value was slightly better than the forecast figure of 17.
GBP/USD rose from 1.5477 to 1.5566 and GBP/JPY climbed from 122.93 to 123.79 as of 23:56 GMT today. EUR/GBP fell from 0.8057 to 0.8030.
If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.
Earlier News About the Great Britain Pound:
- BOE Keeps Stimulus Plan on Hold; UK Pound Rises (2012-06-07)
- UK Pound Down Against US Dollar, But Higher Against Euro (2012-06-05)
- UK Pound Falls on Disappointing Manufacturing Data (2012-06-01)
- Pound Drops to Lowest in Four Months as European Crisis Spreads (2012-05-31)
- Pound Drops After BoE Releases Minutes of Monetary Policy Meeting (2012-05-23)