The latest growth outlook for the UK economy is pushing the pound higher today. Pound reached a five-week high against the euro, thanks to the fact that the United Kingdom is expected to see greater growth in the coming year than the eurozone.
Sterling is pushing higher today, following a report from the Bank of England indicating that mortgage availability increased during the fourth quarter of 2013. Separately, lender Halifax reported that home prices are expected to arise in the United Kingdom.
Since so much of the UK economy relies on the housing market, this news is encouraging. Sterling is on the rise, and reaching significant levels against the euro.
Tomorrow, the Bank of England will make an interest rate policy announcement, and there are expectations that Governor Mark Carney will also share his views of where the economy is headed. There is speculation about when the BOE will pare back some of its stimulus efforts as well. The latest jobs and inflation reports will be considered in this decision as well.
With the UK economy improving, the pound could strengthen as policymakers take steps to prevent inflation from getting out of control.
At 15:11 GMT GBP/USD is up to 1.6459 from the open at 1.6405. EUR/GBP is down to 0.8270 from the open at 0.8299. GBP/JPY is up to 172.4825 from the open at 171.5450.
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