Pound Surges as Confidence Grows in Financial Markets

The increasing confidence in Prime Minister Gordon Brown helped the pound to rally to $1.50 for the first time in three months.
The pound sterling has been showing a significant rise against major currencies since the beginning of the year, if compared to the USD, it has strengthened 2.6%, and more than 8% against the euro. Polls in the United Kingdom show that the Prime Minister’s party, for the past year, trailed the Conservatives, led by David Cameron. Among speculator’s opinions, the United Kingdom is seen as the possible first major economy to recover from the global crisis.
Economists affirm that even if the situation isn’t the best, the pressure on the Prime Minister is less intense, since it’s a natural consequence for the public opinion to improve following an economic rebound. Another fact regarded by analysts with optimist, refers to newspapers front covers, which are already not displaying catastrophic news on currencies. The pound had the worst perform last year from all major currencies, as a combination of rising unemployment and a collapsing real estate market struck the British economy.
The GBP/USD was traded at 1.4935 from 1.4873. In the European markets the EUR/GBP was traded at 0.8815 falling from 0.8875.

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