The Great Britain pound climbed today following the report that showed that Britain’s economy grew last quarter faster than economists had expected, solidifying the case for an interest rate hike.
UK gross domestic product rose 0.4% in the September quarter from the previous month according to the first, preliminary, estimate. It was a positive surprise as experts had predicted the same 0.3% rate of growth as in the June quarter.
The positive data led most analysts to believe that it is almost guaranteed for the Bank of England to raise interest rates in November. With that said, the hike may not be necessarily helpful to the sterling as specialists expect a so-called “dovish hike.” The BoE will make its decision as soon as the next week, on November 2.
In other news, UK Brexit Secretary David Davis said that he hopes to achieve a transitional Brexit deal with the European Union in the first quarter of the next year.
GBP/USD climbed from 1.3133 to 1.3262 as of 22:00 GMT today. EUR/GBP declined from 0.8952 to 0.8907. GBP/JPY rallied from 149.56 to 150.75.
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