Pound Ends Week on Positive Note on Hopes for Sustainable Growth

The Great Britain pound ended this week on a positive note, gaining on Friday against all other major counterparts as hopes for sustainable growth increased the appeal of the currency, especially to those investors who seek a refuge from economic problems of the European Union.

Analysts estimated ahead on the next week’s official report that the UK economy expanded 0.6 percent in the second quarter of 2013. The expansion in the first quarter was slower (0.3 percent). Most macroeconomic reports were confirming that Britain is indeed on a path of recovery.

Such view prompted policy makers to halt increasing of monetary stimulus. Additionally, there was uncertainty regarding effectiveness of quantitative easing.

All in all, this week’s events played in favor of the sterling.

GBP/USD rose from 1.5223 to close 1.5272, the highest settlement since July 3. GBP/JPY went up from 152.83 to 153.24 — the strongest closing prices since June 10. EUR/GBP went down a little from 0.8609 to 0.8603 after rising to 0.8628 intraday.

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