The Great Britain pound climbed today as house prices grew with pace that was two times above the forecast and as construction expanded much faster than was expected.
The Nationwide House Price Index rose 0.8 percent in July, twice the predicted rate of 0.4 percent. The annual growth of 3.9 percent was fastest since August 2010. The seasonally adjusted Markit/CIPS UK Construction Purchasing Managersâ Index climbed from 51.0 in June to 57.0 in July, beating the anticipated value of 51.6 by a wide margin. The rate of output growth was the fastest since June 2010.
Almost all recent reports signaled that the UK economy emerged from recession and is on the path to recovery. Such outlook makes Britain’s currency attractive to investors, especially after fears about quantitative easing tampering by the Federal Reserve were alleviated.
GBP/USD surged from 1.5117 to 1.5287 as of 17:22 GMT today. GBP/JPY jumped from 150.48 to 151.22 and EUR/GBP sank from 0.8733 to 0.8685.
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