The Great Britain pound advanced today as the manufacturing data was better than expected, adding to evidence that the UK economy is able to recover from the recession. Yet market analysts believe that the currency is in danger as traders’ view on the situation in the eurozone has improved.
The manufacturing Purchasing Managers’ Index stood at 49.1 in November, rising from the October’s 47.3, which was the lowest level in three months. Analysts have expected smaller increase to 48.1. The positive data added to the recent signs of of economic recovery in the United Kingdom.
Yet not everything looks good for the sterling. The currency was getting the significant part of its strength from the appeal as a haven from the European problems. Investors look more favorably at Europe now and that appeal is waning. Additionally, other economic reports this week are not expected to be as positive as today’s one.
GBP/USD jumped from 1.6020 to 1.6094 as of 23:57 GMT today. GBP/JPY rose from 132.04 to 132.20, following the drop to 131.57. EUR/GBP was little changed from 0.8115 to 0.8111.
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