Hope for Economic Recovery Attracts Traders to Pound

The Great Britain pound rose today, rallying against other most-traded currencies, as traders were attracted to the UK currency because of signs of economic recovery in the United Kingdom.
December 26 is a bank holiday in the UK, meaning that Britons celebrate two days in a row: Christmas and the Boxing Day. As a result, there is not much news from Britain for now. This did not prevent the sterling from rising as investors favor the currency because of prospects for economic growth in England. The reforms, which will make it easier for small companies to get funds, should contribute to growth.
Next week should be more interesting in terms of economic data. The house price report will be released before the year-end, while the new year will start with Purchasing Managers’ Indexes for manufacturing and construction.
GBP/USD rose from 1.6375 to 1.6412 and GBP/JPY advanced from 171.53 to 171.93, trading near the highest level since October 2008, as of 21:15 GMT today. EUR/GBP declined from 0.8346 to 0.8339.

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