Pound Rises Ahead of Vote in Italy

The Great Britain pound strengthened today after the manufacturing production expanded, while the concerns about the situation in the European Union increased demand for the currency as a safe haven.

Today Italian Prime Minister Silvio Berlusconi faces a parliamentary vote that will decide whether he’ll remain in his seat. The unpredictable outcome of the vote makes traders seek a refuge to safely wait and see how the situation will develop.

UK manufacturing advanced 0.2 percent in September from a year ago, following the 0.3 percent decline in the previous month, increasing appeal of the UK currency. The sterling may yet fall as other fundamental reports weren’t so good.

GBP/USD jumped from 1.6056 to 1.6098 today, but retreated and traded near its opening level as of 11:58 GMT. EUR/GBP was down from 0.8579 to 0.8568, while the intraday minimum was 0.8556.

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