Pound Continues Rally Versus Euro and Dollar

The pound is gaining again versus the euro and the dollar as services industry grew and U.K manufacturing jump beyond expectations in July, pushing the pound to the highest level in 9 months.

The pound sterling may be climbing its way to pre-crisis levels as positive news for the British economy appeared this week after months of consecutive shrinking numbers and political crisis in the British Isles. Today the pound is trading at the highest level in 9 months versus the greenback and the highest in one month versus the euro, fueled by British reports this week that indicated an increase in U.K. manufacturing and services industry figures, helping the pound to widen the gap versus the euro and rebound versus most of the 16 most traded currencies, losing only to extremely high-yielding options, like the Brazilian real.

Analysts affirm that the economic recovery in the U.K. is proving to be happening faster than in other parts of the Europe, which is boosting demand for the pound, and raising attractiveness for equities markets in London. If positive news continue to come in the U.K. it is likely that a rebound pattern will be set for the pound, which is likely to gain mostly versus the greenback and yen, considered refuge currencies and unattractive for the current economic scenario.

GBP/USD traded at 1.7016 as of 11:11 GMT from 1.6953 in the intraday comparison, being the current, the highest rate since last December.

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