Good UK Economic Data Doesn’t Make GBP Strong

The Great Britain pound gained on the euro with help of positive domestic fundamentals. The data did not support the sterling versus the US dollar and the Japanese yen, and even gains versus the euro were greatly reduced by now.
Both industrial and manufacturing production increased by 0.4 percent in April, matching forecasts exactly. The Retail Sales Monitor of British Retail Consortium demonstrated growth of 0.5 percent in May from the previous year on a like-for-like basis. The report said that “this quarter sees overall growth in the retail economy”.
All in all, the data was good, and it is surprising to see that the UK currency does not respond to it favorably. Of course, the sterling was already strong, rising against the yen for seven consecutive sessions, and this means that some form of correction could be expected.
GBP/USD dropped from 1.6803 to 1.6756, and GBP/JPY plunged from 172.26 to 171.51 as of 21:03 GMT today. EUR/GBP traded at 0.8083 following the drop from 0.8089 to 0.8064.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *