The Great Britain pound rallied today on the outlook for an interest rate hike from the Bank of England in May. Negative domestic macroeconomic data did not hurt the currency much.
Traders were counting on a May hike as Britain’s economy was working on all cylinders, as was proven by last week’s employment report. Yet some analysts argued that with the hike priced in the currency needs another supporting factor to maintain its rally.
UK Finance reported that the number of mortgages for house purchases approved by High Street banks in February was at 33,100. That represents a drop by 10.8% from the same month of the previous year.
GBP/USD rose from 1.4136 to 1.4219 as of 11:30 GMT today. EUR/GBP fell from 0.8736 to 0.8728.
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