Britain Avoids Triple-Dip Recession; Pound Rallies
UK pound is getting a boost today, thanks to the latest economic data. Indications that the economy grew, rather than contracted, are helping the pound, as it might mean an end is in sight for the current quantitative easing program.
According to the Office for National Statistics, the UK economy expanded by 0.3 per cent in Quarter 1. Expectations had been for an increase of 0.1 per cent, and some pessimistically proclaimed that the economy would slip into a triple-dip recession. The fact that economic growth exceeded expectations is a big help to the pound.
Even with this good news, though, the pound struggles with gaining a foothold. The economy is still in a delicate state of growth, and the Bank of England hasn’t shown any indication that the easing program will be stopped anytime soon. With stimulus still being used, it will be hard for the sterling to make any real progress.
At 15:42 GMT GBP/USD is up to 1.5441 from the open at 1.5269. EUR/GBP is down to 0.8423 from the open at 0.8525. GBP/JPY is up to 153.5600 from the open at 11.9450.
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Earlier News About the Great Britain Pound:
- Pound Gains on Europe's Woes, Trims Rally vs. Euro (2013-04-24)
- Pound Drops on Domestic Fundamentals, Attempts to Recover (2013-04-23)
- UK Pound Struggles after Earlier Success (2013-04-19)
- UK Pound Struggles after Unemployment Numbers (2013-04-17)
- Pound Rises as Inflation Remains Above BoE Target (2013-04-16)