Positive Data Helps GBP Reach Multi-Year Record vs. USD

The Great Britain pound rose today, reaching new highs versus the US dollar, as economic reports from the United Kingdom were mostly good, confirming that recovery of the UK economy is gaining momentum.
The Nationwide House Price Index grew 1.2 percent in April, two times the forecast growth by 0.6 percent. The seasonally adjusted manufacturing Markit/CIPS Purchasing Managers’ Index went up from 55.8 in March to 57.3 in April instead of falling to 55.4 as was predicted by analysts. Not all reports were good as was demonstrated by mortgage approvals which fell from 69,592 in February to 67,135 in March, while market participants have expected an increase. The sterling preferred to pay attention to the positive part of today’s data, rising against most of its major counterparts.
GBP/USD went up from 1.6872 to 1.6903 as of 10:08 GMT today, and its daily high of 1.6917 was the strongest since August 2009. GBP/JPY advanced from 172.46 to 172.82.

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