The Great Britain ended the month with the biggest gain against the euro in a year as the sterling continued to rise on improving consumer sentiment and increasing house prices. The UK currency ended Friday flat versus the US dollar and closed with a small loss against the Japanese yen.
The GfK UK Consumer Confidence Index increased by three points to -13 in August. The report said:
As more and more official figures show that we are all worse off, with UK living standards at their lowest for a decade, the British publicâs economic confidence continues to grow strongly â a conundrum of Alice in Wonderland proportions.
The Nationwide house price index rose 0.6 percent in August after advancing 0.9 percent in the prior month.
Macroeconomic data continues to confirm that the UK economy stands firmly on the path to recovery. This is not necessary favorable for the currency, as some analysts point out, because the recovery is already priced in and without any major positive surprises the sterling’s rally is going to lose momentum.
EUR/GBP fell from 0.8538 to close at 0.8527 today. Meanwhile, GBP/USD closed at 1.5495 after opening at 1.5502 and GBP/JPY slipped from 152.45 to 152.11.
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