UK Pound Gains on Economic Data

UK pound is gaining today, thanks in part to better than expected economic data out of Great Britain. Good news is helping the pound against the US dollar and against the euro. While there are still some hurdles for sterling, right now the outlook is pretty good.

UK trade deficit data came in under the estimate, showing a narrower than expected gap. Instead of 1.9 billion pounds of deficit, Britain saw 1.762 billion pounds. This indication that demand for exports is growing provided a bit of a boost to the UK pound. On top of that, RICS housing price data showed better than expected improvement as well. The good news continues to support the pound against the US dollar and the euro.
However, even with this good news, the pound has a long road ahead. There are plenty of concerns, including the slow economic growth in Britain. Austerity measures have been in effect under David Cameron‘s government, and the improved export picture might not do enough to boost the British economy — especially if exports slow again as a result of global economic slow.
At 14:17 GMT GBP/USD is higher at 1.5683, up from the open at 1.5635. EUR/GBP is lower at 0.8332, down from the open at 0.8409. GBP/JPY is higher at 129.1425, up from the open at 108.2400.

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