CBI Raises Growth Forecast of UK, Benefiting Pound

The Great Britain pound strengthened today as Confederation of British Industry raised its forecast of UK economic growth, reinforcing the positive outlook for Britain’s economy and increasing attractiveness of the currency to Forex traders.
CBI increased its estimate for Britain’s growth this year from 1 percent to 1.2 percent. For 2014, the forecast was boosted from 2 percent to 2.3 percent. John Cridland, the CBI Director-General, said:

The economy has started to gain momentum and confidence is picking up, but it’s still early days. We need to see a full-blown rebalancing of our economy, with stronger business investment and trade before we can call a sustainable recovery. We hope that will begin to emerge next year, as the Eurozone starts growing again.

GBP/USD rose from 1.5612 to 1.5649 (its daily high was at 1.5672 — the highest since June 19) and GBP/JPY went up from 152.41 to 153.27 as of 11:37 GMT today.

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