Pound Rallies on Friday After Week of Good Data

The Great Britain pound gained on Friday, poised to end the week with gains versus the Japanese yen but was heading to losses against the euro and the Swiss franc.

All the major reports released from Great Britain during the week (be it data about manufacturing, construction, or services) were good and exceeded expectations. That proved that Britain’s economy stayed resilient in face of the looming Brexit.

Some analysts argued that the current bounce of the sterling was a result of unwinding of short positions by speculators after the recent losses against some majors (for example, the currency was falling for four straight days against the Swiss franc before bouncing today) rather than a reaction to positive fundamentals. And the currency needs more good news to continue going up.

But it is hard to expect good news amid concerns that the Brexit negotiations between the European Union and the United Kingdom are not going to be easy, and the surprise general election next month adds more uncertainty to the equation. Prime Minister Theresa May accused EU officials of interfering in the elections, though polls show that her Conservative party should have a landslide victory according to polls.

GBP/USD rallied from 1.2920 to 1.2959 as of 16:46 GMT today. GBP/JPY advanced from 145.28 to 145.98. GBP/CHF was up from 1.2744 to 1.2793.

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