UK pound is heading higher today, gaining against its major counterparts as economic news improves. Sterling bulls are looking for excuses to help the pound, and there is enthusiasm surrounding even second-tier releases right now.
Yesterday, the pound struggled against the euro, but now some are beginning to think that might have been profit taking ahead of positions to favor the sterling. Pound is higher against the euro today, and gaining against the dollar and the yen as well.
The latest news out of the United Kingdom indicates that the economy might be improving. The latest CBI manufacturing output data beat expectations. This is just another report — in a line of reports — that have taken many by surprise by showing improvement.
Some Forex traders are glomming on to any good news out of the United Kingdom as an excuse to proclaim economic troubles over and the pound on the rise. There are still plenty of hurdles, however. While there are signs of economic recovery, the UK economy still isn’t moving at a pace that is likely to prompt the Bank of England to cut quantitative easing just yet.
At 14:43 GMT GBP/USD is up to 1.5688 from the open at 1.5668. EUR/GBP is down to 0.8536 from the open at 0.8564. GBP/JPY is up to 153.0630 from the open at 152.3950.
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