Good Week for Pound, Yet Outlook Remains Uncertain

The Great Britain pound rose this week as the favorable GDP report and the improving consumer confidence caused the speculation that the central bank wouldn’t introduce the additional stimulus to support the economy.

The UK gross domestic product rose twice the forecast value and the consumer confidence improved, while it was predicted to decline. The favorable reports improved the outlook for Britain’s economy somewhat. The pound erased the losses of the last week against the US dollar and ended the five-week losing streak versus the Japanese yen.

The favorable outlook for the UK economy isn’t certain. There were poor reports this week, including the report about the mortgage approvals and the home price index. The analysts think that the confidence of the Britons may drop when they fully realize the implications of the budget cuts.

GBP/USD advanced from 1.5663 to 1.6022, while GBP/JPY went up from 127.44 to 128.94.

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