Economic Expectations Boost the UK Pound

Economic expectations are helping the UK pound today, especially against the euro. The pound is seeing success as Forex traders and analysts look to 2014 for continued improvement in the UK economy. Many expect good news for the housing sector, and that is expected to form the cornerstone of economic recovery.

During 2013, the sterling appreciated against 13 of 16 major counterparts. Today, the UK pound is at a three-week high against the euro. Even though the UK pound has seen a bit of volatility throughout, the overall trend has been one of gathering strength.

Right now, as the year draws to a close, the UK pound is mostly higher. Expectations are that November home prices and mortgage approvals are up, and an improving housing market is forming the basis of a better economy for 2014.

There are expectations that, at some point in the relatively near future, the Bank of England will begin stepping down its stimulus programs. The BOE said it will keep rates low until unemployment gets below 7 per cent, and the level is at 7.4 per cent right now. Sterling is a currency to keep an eye on.

At 14:39 GMT GBP/USD is up to 1.6524 from the open at 1.6504. EUR/GBP is down to 0.8326 from the open at 0.8361. GBP/JPY is up to 173.5750 from the open at 173.4550.

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