UK pound is gaining ground today, heading higher as the latest BOE economic outlook provides some hope for growth. Sterling is on the rise against most of its major counterparts due to the enthusiasm and expectations for the rest of the year.
The Bank of England released its quarterly inflation report, and forecast that growth may increase to 0.5 per cent this quarter. This represents an increase from the 0.3 per cent growth seen last quater. On top of that, it appears that jobless claims in the United Kingdom have fallen.
As a result of this somewhat positive news, the UK pound is on the rise. Hopes for an improving economy, and expectations that the United Kingdom really can avoid a triple-dip recession are now helping the sterling against other currencies. There is a definite sense that the worst is over for the UK economy and for the pound.
This is in sharp contrast to continued data out of the eurozone that shows a situation in decline. As a result, the pound is enjoying its first advance against the euro in about four days.
At 13:20 GMT GBP/USD is up to 1.5237 from the open at 1.5208. EUR/GBP is down to 0.8448 from the open at 0.8496. GBP/JPY is down to 155.7320 from the open at 155.6735.
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The Great Britain pound declined today even though macroeconomic data from the United Kingdom was encouraging. The housing market looked particularly good as demand for property rose to its highest level in over three years.
The house price balance of Royal Institution of Chartered Surveyors improved from -2 percent to 1 percent in April. Still, it was below the analysts’ forecast of 2 percent. The Conference Board leading index continued to grow at the stable rate of 0.4 percent in March. Yet the sterling maintained its drop despite the positive data.
GBP/USD fell from 1.5298 to 1.5259, near the lowest since April 24, and GBP/JPY declined from 155.74 to 155.39 as of 12:43 GMT today.
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The Great Britain pound fell against the US dollar today even as the Bank of England maintained the monetary policy the same, refraining from additional easing. The currency rose against the euro and the Japanese yen though.
The BoE kept its benchmark Bank Rate at 0.5 percent and the asset purchase program at £375 billion at today’s meeting. Such decision was anticipated by market participants.
The behavior of the pound against the dollar was less predictable though. The stable monetary policy should be considered beneficial for the currency, but the sterling fell nonetheless. Today’s data made the drop even more puzzling as the report about industrial and manufacturing production was good and should have helped the currency.
GBP/USD slipped from 1.5532 to 1.5449 as of 22:38 GMT today. EUR/GBP ticked down from 0.8465 to 0.8438. GBP/JPY advanced from 153.75 to 155.55, the highest settlement since August 2009.
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The Great Britain pound advanced today on speculations that the recent string of positive reports will encourage the Bank of England to refrain from adding to monetary stimulus on tomorrow’s meeting. The currency went down against the euro.
The BoE will conduct its policy meeting on May 9. Analysts expect no changes to the policy. The recent data suggested that the economic situation in the United Kingdom is changing, making it prudent for the central bank to wait and see what steps are necessary to facilitate growth of the economy.
Today’s data was mixed. On one hand, the Halifax House Price Index rose 1.1 percent in April, much more than analysts have predicted (0.2 percent). On the other, British Retail Consortium Retail Sales Monitor turned down 2.2 percent last month from a year ago.
GBP/USD went up from 1.5482 to 1.5536 as of 20:39 GMT today and its daily high was at 1.5590. GBP/JPY advanced from 153.26 to 153.78. At the same time, EUR/GBP edged higher from 0.8444 to 0.8466, reaching 0.8488 intraday.
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The Great Britain pound rose today as data showed that the service sector expanded last month faster than was expected, adding to signs of economic recovery in the United Kingdom.
The Markit/CIPS UK Services Purchasing Managers’ Index rose from 52.4 in March to 52.9 in April. Analysts have expected it to stay little changed. Today’s data added to the previous positive reports, proving that the UK economy is indeed on track to recovery.
GBP/USD rose from 1.5531 to 1.5545 and GBP/JPY ticked up from 152.08 to 152.49 as of 11:23 GMT today.
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The Great Britain pound remained strong today as data showed that the construction sector shrank last month less than was predicted by analysts, giving hope that the UK economy is recovering.
The Markit/CIPS UK Construction PMI rose from 47.2 in March to 49.4 in April, beating the forecast of 48.1. As with manufacturing, the report was not strictly good as it still pointed on decline of the sector, but at least it was better than predictions. The pound profited from the data and also rose against the euro on speculations that the European Central Bank will cut interest rates today.
GBP/USD rose from 1.5553 to 1.5569, trading near the highest since February 13, while EUR/GBP ticked down from 0.8468 to 0.8451 as of 9:32 GMT today.
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The Great Britain pound was little changed today even after UK consumer confidence unexpectedly fell this month, suggesting that the Britain’s problems did not end yet.
The GfK UK Consumer Confidence Index decreased by one point to -27 in April. Forecasters have predicted it to stay unchanged at -26. The report said that “the recovery in confidence has stalled, and real recovery looks a long way away”.
GBP/USD was at about 1.5495 as of 8:30 GMT today after falling from 1.5498 to 1.5465. GBP/JPY traded at 151.45, near the opening of 151.47.
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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.
For now, though, there is support for the pound, and many are waiting to see what happens this summer when Mervyn King leaves the BOE to be replaced by Mark Carney.
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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The Great Britain pound rallied today as poor macroeconomic data from Europe increased the appeal of the UK currency as a safe haven against problems in the eurozone. The sterling trimmed its gains versus the euro as Britain’s retail sales unexpectedly fell.
The German Ifo Business Climate Index fell from 106.7 in March to 104.4 in April. Analysts have hoped that the gauge would stay little-changed. The report added to signs of economic weakness of the eurozone.
The economic environment in Britain itself is not much better, reducing the attractiveness of the pound. Confederation of British Industry reported that the Realized Sales index was at -1 in April, while forecaster promised it to rise to 7.
GBP/USD rose from 1.5234 to 1.5264 and GBP/JPY advanced from 151.56 to 151.90 as of 21:09 GMT today. EUR/GBP was at 0.8521, while earlier it fell from 0.8529 to 0.8495.
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The Great Britain pound weakened today as a report showed that industrial order expectations fell this month, confirming that the UK economy continues to remain weak.
Confederation of British Industry reported that factory orders declined from -15 in March to -25 in April. Analysts have expected the gauge to stay little-changed at -14. The data added to concerns about Britain’s economic health, hurting the sterling. Right now, the currency is attempting to rebound, but remains far from the opening level.
GBP/USD traded at 1.5256 as of 11:33 GMT today after falling from 1.5289 to 1.5195. GBP/JPY went down from 151.71 to 150.55.
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