The Great Britain pound advanced on hopes that the United Kingdom will emerge from recession. Traders turned their attention to the GDP report, released today, which is expected to show growth.
Bank of England Governor Mervyn King said that UK economic growth can be a bit inconsistent:
And the zig-zag pattern of quarterly growth rates of GDP that we have seen this year is likely tocontinue, as we may see on Thursday when figures for the third quarter are released.
Indeed, analysts promised that today’s report will show an increase of Britain’s gross domestic product by 0.6 percent in the third quarter of this year, following the drop by 0.4 percent in the second quarter. The report is very important and the expectations overshadowed yesterday’s negative data.
The pound reached the highest level since October 16 against the euro. The jump was biggest in more than three months.
GBP/USD was up from 1.5949 to 1.6035 yesterday and traded at 1.6034 as of 1:10 GMT today. GBP/JPY climbed from 127.94 to 128.14 today. EUR/GBP dropped from 0.8138 to 0.8087 on yesterday’s trading session and remained near that level on today’s session.
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