UK Pound Continues to Gain

UK pound is still benefiting from recent economic news that turned out better than expected, as well as from comments from the new BOE Governor that indicate that quantitative easing is non longer needed. Amidst the political issues plaguing the eurozone and the United States, the pound looks pretty well positioned.

The latest economic news out of the United Kingdom was better than expected. Hometrack‘s most recent report indicates that UK home prices are on the rise. Additionally, mortgage approvals are on the rise. With the housing market moving back on track, there are hopes that the British economy isn’t too far behind.

Forex traders have also been seizing on Mark Carney‘s remarks last week. The Bank of England Governor indicated that there isn’t much more reason for quantitative easing, and some are taking this as a cue that asset purchases will be reduced soon.

With the issues plaguing Italy right now, and a government shutdown in the United States, it’s clear that the UK pound has the upper hand for now; it’s one of the few major currencies not embroiled in controversy.

At 14:02 GMT EUR/GBP is down to 0.8345 from the open at 0.8356. GBP/USD is up to 1.6213 from the open at 1.6185. GBP/JPY is up to 159.11 from the open at 158.97.

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