Pound Maintains Gains with Help of Optimistic Outlook

The Great Britain pound kept its yesterday’s gains against the euro and the Japanese yen today as expectations of accelerating economic recovery in the United Kingdom make the currency more appealing to Forex traders.
The sterling was heading to weekly gains against the US dollar and the yen and trimmed losses versus the euro. Prospects for monetary tightening that may happen sooner than was expected were definitely helping the currency.
The currency’s rally slowed, though, as negative data damped traders’ optimism. UK retail sales dropped 0.7 percent in October after rising 0.6 percent in the previous month. Analysts expected no change.
GBP/USD was flat at 1.6064 as of 1:23 GMT today. GBP/JPY advanced from 160.65 to 161.06, trading near the strongest level since August 2009. EUR/GBP was at about 0.8372 following yesterday’s drop from 0.8397 to 0.8375.

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