Pound Falls Despite Good Fundamentals
The Great Britain pound headed to the fourth consecutive weekly loss against the dollar today even though macroeconomic data was good. The currency was also down versus the Japanese yen, but will likely end the week with gains.
Public sector net borrowing was at £12.8 billion in September, falling from £13.5 billion a year ago. Analysts have though that it would stay unchanged. Current budget deficit fell to £11.2 billion last month, while it was at £11.6 billion in the same period last year. Today’s positive data followed yesterday’s report about retail sales that showed growth by 0.6 percent in three months through August, more than market participants have expected. The positive fundamentals did not help the sterling though.
GBP/USD fell from 1.6042 to 1.6008 and GBP/JPY dropped from 127.14 to 126.93 as of 16:35 GMT today.
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