Pound Gains on Vulnerable Dollar, Falls Against Other Rivals

The GBP/USD currency pair (also know as the Cable) rallied today on the back of the US dollar’s weakness. The Great Britain pound fell against other currencies, though. In fact, there were speculations that the sterling may reach parity with the euro.

Today’s comments from European Central Bank President Mario Draghi sent the US dollar lower against other currencies, helping the Cable to gain. Yet the situation does not look good for the pound in the longer term as speculators stacked up their bearish bets against the UK currency according to the Commitments of Traders released last week by the US Commodity Futures Trading Commission. There are even talks about the sterling reaching parity with the dollar. Analysts said that it is not impossible but does not look likely, at least for now.

Thursday’s macroeconomic data did not help Britain’s currency despite being rather good. The Halifax House Price Index rose 1.1% in August after increasing 0.7% in July. That was far bigger growth than 0.2% promised by specialists.

GBP/USD gained from 1.3041 to 1.3081 as of 19:12 GMT today, reaching the high of 1.3115 intraday. EUR/GBP rallied from 0.9135 to 0.9174, and its daily high was at 0.9201. GBP/JPY slid from 142.36 to 142.17, sliding to the low of 141.51 during the trading session.

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