The Great Britain pound was among the strongest currencies on the Forex market this week. The sterling gained 1.1 percent against the US dollar. It was the third consecutive weekly advance versus the greenback as well as against the Japanese yen.
Market analysts thought that the main reason for the sterling’s bullishness was the Inflation Report from the Bank of England. Although the report predicted deflation in the near future, it also promised the period of falling consumer prices to be short. Overall, market participants considered the report to be rather hawkish and positive for Britain’s currency.
Outside of Britain, traders were watching the situation around Greece and eurozone economic indicators. Commodity currencies, and the Canadian dollar in particular, found help from the rally of crude oil prices. Meanwhile, the Swiss franc continued to fall after the initial surge following the end of the cap on the Swissie that was implemented by the Swiss National Bank.
GBP/USD climbed from 1.5227 to 1.5402 during this trading week. EUR/GBP went down from 0.7417 to 0.7398, reaching the low of 0.7371 during the week — the lowest rate since December 2007. GBP/JPY advanced from 181.24 to 182.91. GBP/CHF was up from 1.4105 to 1.4355 (1.9 percent.)
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