Forex Blog

October 25, 2012

Pound Surges to Near 1.6150 After U.K. Emerges From Recession

The pound climbed the most in three weeks against the dollar after Britain’s economy expanded by more than analysts forecast in the third quarter, pulling the nation out of a recession.

U.K. government bonds fell as the strongest growth in five years prompted economists at Barclays Plc and Investec Securities to abandon forecasts for the Bank of England to expand its bond-buying program next month. Sterling advanced to a one-week high versus the euro after central bank Deputy Governor Charles Bean said the economy was “past its worst.”

“The pound is getting a boost from the GDP data coming in quite a bit above market expectations,” said Ian Stannard, head of European foreign-exchange strategy at Morgan Stanley in London. “We could now see the pound strengthening more, particularly against the euro.”

via Bloomberg

June 29, 2010

Pound Continues to Gain on Euro

The pound climbed to a 19-month high against the euro yesterday as nervous investor’s anxiously eye a deadline later this week requiring many European banks to repay loans taken out a year ago. The pound rose almost half a cent to 1.2327 euros, its highest level since the immediate aftermath of the financial crisis in November 2008.

“Markets are tense going into the end of the long-term refinancing programme, along with [Wednesday's] three-month auction,” said John Hydeskov, senior currency analyst at Danske.

Source: BBC News

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