UK pound is heading higher today, thanks in part to expectations that a rate increase from the Bank of England could be coming by the end of 2015 or around the beginning of 2016. With growth accelerating in the United Kingdom, expectations for the pound are growing.
The latest GDP data indicates that the UK economy grew by 0.7 per cent during the last quarter. This is an interesting benchmark since Bank of England Governor Mark Carney has said in the past that 0.6 per cent growth would warrant a look at the possibility of raising rates.
With this most recent indication that things are in train for the United Kingdom, there are expectations that a rate hike might not be too far behind. Some think that a rate hike near the end of 2015 or the beginning of 2016 would be appropriate. For now, sterling is gaining against its major counterparts. UK pound is even higher against the US dollar, which is showing strength today as a rate hike is considered from the Federal Reserve.
At 13:22 GMT GBP/USD is moving higher, gaining to 1.5656 from the open at 1.5615. GBP/EUR is dropping, moving lower to 0.7059 from the open at 0.7083. GBP/JPY is higher, moving up to 193.5790 from the open at 192.9160.
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