Pound Recovers as Optimism Returns
The Great Britain pound erased its losses versus the US dollar and rose against the Japanese yen as positive macroeconomic data revived optimism for recovery in the United Kingdom.
Analysts’ pessimistic expectations about the sterling were not correct so far. The currency rallied as the Residential Market Survey of Royal Institution of Chartered Surveyors was quite positive. The Quarterly Economic Survey of the British Chamber of Commerce was very good too. David Kern, Chief Economist at the BCC, said:
Growth will continue, but it is likely to slow slightly following this recent spurt. External shocks from the US shutdown, possible debt default and tapering, and continued risks elsewhere in the world could all impact on our fragile recovery.
GBP/USD traded at about 1.6106 as of 11:54 GMT today after falling from 1.6091 to 1.6019 earlier. GBP/JPY rose from 155.62 to 156.33.
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