Pound Regains Strength After Week of Losses

The Great Britain pound rose today against most major currencies, following the significant drop last week, on the speculation that the decline was overdone and the state of the UK economy isn’t bad enough to warrant such sell-off.

Analysts expect that tomorrow’s government report will show that Britain’s current account deficit narrowed from £10.5 billion to £5.0 billion in the first quarter of this year. The final revision of the UK GDP is expected to show a growth by 0.5 percent in the Q1 2011, following the 0.5 percent decline in the Q4 2010. The pound currently falling after initial jump. The currency retreated against the US dollar, but kept gains against the Japanese yen.

EUR/JPY rose from 128.16 to 128.81 today as of 12:32 GMT after posting the intraday high of 129.21. GBP/USD traded near 1.5944 after it rallied from 1.5961 to 1.6007.

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