The Great Britain pound rose against the US dollar and the Japanese yen today as macroeconomic data supported the view that the Bank of England will not cut interest rates on tomorrow’s policy meeting. The sterling fell against the euro, which was supported by domestic data too.
Manufacturing production expanded 1.2 percent in September from August. Industrial production grew 0.9 percent. The Halifax House Price Index was up 0.7 percent in October, while economists have thought that the rate of expansion would stay at 0.4 percent — the same as in the previous month.
The vast majority of economic reports confirm that recovery is underway and additional monetary stimulus is not required. Such outlook supports the pound, but the currency may struggle to keep gains as the central bank does not look ready for monetary tightening in the near future.
GBP/USD was up from 1.6042 to 1.6079 and GBP/JPY advanced from 158.02 to 158.63 as of 23:08 GMT today. EUR/GBP ticked up from 0.8395 to 0.8403.
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