British Pound Grows on April PPI Report

The Great Britain pound rose today against the U.S. dollar and the euro, partially recovering its losses from the last week, as the record high PPI growth added confidence that the Bank of England will not lower interest rates next time.

The prices for the British long-term securities declined today, while their yields increased, showing a higher inflation pressure for the economy of the United Kingdom.

The country’s producer price index increased 7.5 percent in a year-to-year comparison in April  the highest annual growth in a 24-year period, since the PPI record began. April to March gain in PPI was at 1.4 percent  also a record monthly growth rate.

EUR/GBP had a first significant drop this day since May the 1st as the currency pair declined from Friday’s close level 0.7923 to 0.7889 as of 11:51 GMT. GBP/USD had a first large growth since 30th of April today, it went up from 1.9506 to 1.9578 as of 11:51 GMT.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *