Great Britain Falls, Heads to Weekly Gains

The Great Britain pound fell today against its major peers, though it was heading to weekly gains against most currencies (with the exception of the very strong US dollar).

The sterling continued to recover from the “flash crash” that has happened on October 7. While the currency fell sharply to new multi-year lows, it has recovered very quickly, leaving market participants puzzled and guessing about reasons for such behavior. Since then, positive economic data and neutral stance of Britain’s central bank have helped the pound to regain footing and slowly crawl to the upside.

Looking into the future, traders focus on the economic and fiscal outlook from Office of Budget Responsibility, which is released annually, and its next release is scheduled for November 23. The second estimate of Britain’s gross domestic product in the third quarter of this year will be released on November 25, and experts do not anticipate any change from the preliminary reading that showed growth by 0.5%.

GBP/USD dropped from 1.2415 to 1.2326 as of 17:28 GMT today. EUR/GBP rallied from 0.8552 to 0.8590, touching the daily high of 0.8635. GBP/CHF declined from 1.2505 to 1.2447.

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