Improving UK Trade Balance & House Prices Make Sterling More Appealing
The Great Britain pound jumped against the US dollar, reaching the highest level in 4 months, today after macroeconomic reports showed that trade balance and house prices improved, easing fears about the stagnating UK economy.
The Office for National Statistics reported that the trade balance deficit shrank from £10.1 billion in June to £7.1 billion in July. The house price balance was at -19 in August, according to the Royal Institution of Chartered Surveyors data. The reading is not particularly good, but at least it is better than the previous value of -23. The reports gave hope that the United Kingdom is able to emerge from the recession and that hope increased the attractiveness of the pound.
GBP/USD jumped from 1.5987 to 1.6066 as of 15:59 GMT today and its intraday maximum of 1.6082 was the highest since May 15.
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