The Great Britain pound gained today as Forex traders quickly lost belief that the bailout for Spain would resolve the countries problems. Fears returned to the FX market and pound again was considered a refuge from Europe’s woes.
Fitch Ratings said that countries of the eurozone face a risk of credit rating downgrades. Edward Parker, the Managing Director of the rating agency, even stated that the currency union may break up if there will be “no light at the end of the tunnel soon”. The comments helped the pound’s return to its role as haven from problems of the euro-area.
The sterling also got boost from domestic fundamentals. Royal Institution of Chartered Surveyors reported that its house price index rose to -16 in May from -19 in April. The actual value was slightly better than the forecast figure of 17.
GBP/USD rose from 1.5477 to 1.5566 and GBP/JPY climbed from 122.93 to 123.79 as of 23:56 GMT today. EUR/GBP fell from 0.8057 to 0.8030.
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