Positive Fundamentals Lead to Week of Strength for Sterling

The Great Britain dollar was rallying this week as positive macroeconomic data confirmed economic recovery in the country that recently emerged from recession. Fundamentals outside of Britain also helped the currency.
The reports about manufacturing and services were better than expected, boosting the pound, but even negative reports did not affect the currency in a negative manner.
The sterling advanced versus the US dollar on quantitative easing from the Federal Reserve and good non-farm payrolls. The European Central Bank interest rate cut helped the currency against the euro, while the Bank of Japan minutes allowed the pound to appreciate versus the yen. The UK currency gained against the Australian dollar amid negative news for the Aussie, but trimmed gains as the Australian currency advanced by the end of the week.
GBP/USD rallied from 1.5483 to 1.5565 this week, touching the weekly high of 1.5604 — the strongest price since February 13. GBP/JPY jumped from 151.64 to 154.13 — the highest weekly close since August 2009. EUR/GBP rose from 0.8424 to 0.8495 during the week, but returned back to the opening level by the weekend. GBP/AUD closed at 1.5082, trimming the rally from 1.5055 to 1.5233.

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Your email address will not be published.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 *

− four = one