Pound Gains as Economic Indicators Point at Recovery

The Great Britain pound advanced today, rising for the fourth straight session versus the Japanese yen, as this week’s macroeconomic data suggested that the UK economy is recovering from the recession. The currency declined against the euro.
Unemployment claims fell 3,000 in November from October, according to the report released on December 12, while an increase two times as big has been expected by specialists. The Royal Institution of Chartered Surveyors said today that it expects house prices to grow 2 percent over the course of the next year. Still, the RICS warned:

But these tentative signs of recovery in the sales market should not blind us to the very real problems that still exist.

Indeed, some market analysts do not believe that traders should be overly optimistic for the UK economy or to be bullish on the sterling. They believe that Britain’s economy has enough problems to threaten the safe status of the pound.
GBP/USD rose from 1.6110 to close at 1.6155 today. GBP/JPY climbed from 134.75 to 134.89 and its daily high of 135.37 was strongest since May 2. EUR/GBP advanced from 0.8114 to 0.8140 following the drop to 0.8095.

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