Pound Rises vs. Euro, Falls vs. Dollar & Yen

The Great Britain pound rose against the euro at the start of today’s Forex trading session after the British Chambers of Commerce raised its forecast for Britain’s economic growth in this and the next years. The sterling fell later but currently is rising again. Britain’s currency fell versus the US dollar and the Japanese yen.
Britain’s economy looks more stable than economies of other European countries as it’s not burdened by the debt crisis. This allowed the BCC to raise the forecast for the UK GDP in 2010 to 1.7 percent. The weakness of the euro itself also helped the pound to gain.
The gains of the pound expected to be limited, though, as Britain’s economy may be hurt by the budget spending cuts and the weaker housing market. The UK house prices fell by 0.3 percent in August, following the 0.1 percent decline in July. The concerns for the UK economy weakened the pound against the dollar and the yen.
EUR/GBP fell from 0.8215 to 0.8193 today as of 16:24 GMT, following the decline to 0.8161. GBP/USD dropped from 1.5530 to 1.5468 after it climbed as high as 1.5575. GBP/JPY slipped to 130.93 from the opening rate of 132.56 after it reached previously the daily high of 133.60.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *