The Great Britain pound rallied to the highest level since September against the US dollar during the Friday’s trading session. The currency also logged solid gains against other most-traded rivals.
While the sterling’s rally versus the dollar could be explained by the poor US economic reports, the gains against other currencies mean that the pound had its own supportive fundamentals. Analysts believe that the major positive factor for Britain’s currency was the anticipation of stimulus tapering by the Bank of England. This week’s decent employment data reinforced the outlook for tighter monetary policy.
Next week should be fairly important for the pound as a couple of major economic reports will be released in the United Kingdom, namely inflation and retail sales data. Experts predicted that the Consumer Price Index should demonstrate the same 2.9% growth in June as in May. Retail sales should show an increase by 0.3% last month following the drop by 1.2% the month before.
GBP/USD jumped from 1.3% from 1.2939 to 1.3106 as of 20:50 GMT today. GBP/JPY rallied from 146.51 to 147.42. EUR/GBP dropped from 0.8807 to 0.8749.
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