The Great Britain closed lower today despite another positive economic report that added to evidences of recovery in the United Kingdom. Forex traders were concerned that the currency was going too long in one direction.
Public sector net borrowing excluding temporary effects of financial interventions was at £13.2 billion in August. It was £1.3 billion lower than the budget deficit of £14.4 billion a year ago. Analysts have predicted slightly higher reading.
The unending stream of positive data from the UK made investors more inclined to buy Britain’s currency. Experts warn though that the sterling was moving too long in one direction and some form of a correction should be expected. Such correction has indeed occurred, but question remains: will the currency resume its rally or will it go further down?
GBP/USD went down from 1.6029 to close at 1.6015. GBP/JPY slipped from 159.41 to 159.07. EUR/GBP closed a little higher at 0.8441 after opening at 0.8438.
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