The pound managed to pare early losses versus the euro and the dollar after the IMF affirmed that the United Kingdom will grow more than previously announced for the next year, adding confidence for the British Isles economies.
Bank of England Governor Mervyn King set the pound to the weakest level in months versus the euro and the dollar after affirming in a newspaper interview that the current weakness of U.K.’s currency is helpful at the moment since it helps British products competitiveness in the global exporting scenario, but yesterday and today the pound found support on International Monetary Fund report with a renewed forecast for 2010 GDP growth in the U.K., which was at almost zero before and now is expected to be around 1 percent, as the real estate market is improving slightly and retail prices are growing.
The U.K. was not only one of the most affected countries by the global slump last year, but it was also one that proved itself less efficient to cope with a negative scenario, fact which decreased attractiveness for the national currency and set the pound to the weakest levels in more than a decade versus its main rivals. The IMF forecast is definitely a breather for the pound and a light in the end of the tunnel for the faltering U.K.’s economy.
GBP/USD remained rather neutral after fluctuations from yesterday at 1.5974 as of 11:20 GMT. EUR/GBP traded at 0.9103 falling from 0.9177 hours earlier.
If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.
