UK pound is gaining against the euro today, heading higher as expectations of more quantitative easing fade. Pound is showing strength at a time when the euro is showing weakness, and that is giving the pound the upper hand.
Thanks to the unexpectedly strong economic figures coming out of the United Kingdom earlier this week, the pound is gaining ground against the euro. Thanks to the latest growth data, in which the third quarter of 2012 showed some of the strongest growth in the United Kingdom since 2007, some think that quantitative easing will no longer be needed for stimulus. Forex traders will need to wait for more information from the Bank of England, but right now the expectation is that QE will not be needed as much.
The better news out of the United Kingdom stands in contrast with continued weakness in the eurozone. Concerns about disappointing data out of Germany are dragging on the 17-nation currency region, as well as worries about what’s next for Greece and Spain. There are still political issues to be resolved in Greece, and Spain still hasn’t asked for a bailout.
At 13:13 GMT EUR/GBP is down to 0.8015 from the open at 0.8025. GBP/USD is lower, down to 1.6113 from the open at 1.6118. GBP/JPY is down to 128.6230 from the open at 129.4350.
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