UK pound is gaining ground today, heading higher as the latest BOE economic outlook provides some hope for growth. Sterling is on the rise against most of its major counterparts due to the enthusiasm and expectations for the rest of the year.
The Bank of England released its quarterly inflation report, and forecast that growth may increase to 0.5 per cent this quarter. This represents an increase from the 0.3 per cent growth seen last quater. On top of that, it appears that jobless claims in the United Kingdom have fallen.
As a result of this somewhat positive news, the UK pound is on the rise. Hopes for an improving economy, and expectations that the United Kingdom really can avoid a triple-dip recession are now helping the sterling against other currencies. There is a definite sense that the worst is over for the UK economy and for the pound.
This is in sharp contrast to continued data out of the eurozone that shows a situation in decline. As a result, the pound is enjoying its first advance against the euro in about four days.
At 13:20 GMT GBP/USD is up to 1.5237 from the open at 1.5208. EUR/GBP is down to 0.8448 from the open at 0.8496. GBP/JPY is down to 155.7320 from the open at 155.6735.
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