The Pound is on track to make weekly gains against a number of its peers as speculation rises that the Bank of England will raise interest rates earlier than expected as the UK economy continues to improve.
Against the Euro, Sterling climbed for a third consecutive day to trade in the region of 1.19 whilst against the US Dollar it is trading close to a weekly high. The currency’s strength comes after Bank of England Governor Mark Carney said midweek that ‘The UK has one of the strongest recoveries in the advanced world.’
On Thursday the currency came under pressure after the Office for National Statistics released data which showed that retail sales fell by 0.7% in October, below economist expectations for a 0.1% gain. Retail sales rose by 0.6% in September. On a year-by-year basis sales were up by 1.8% but were well below forecasts for a rise of 3.1%, after rising at an annual rate of 2% in September. Next month’s figures are expected to show an improvement as consumer confidence continues to rise ahead of the Christmas holidays.
“We have seen such a strong move in the Pound this week. The strength is justified by the improvement in the economic performance and I think over the medium term it can continue,” Ulrich Leuchtmann, head of currency strategy at Commerzbank AG told Bloomberg.
Next Wednesday sees the publication of the BoE’s policy meeting minutes which are expected to confirm that the Bank is considering advancing its predictions for the UK economy and will offer a clue as to whether policy makers believe a reduction in its easing programme should occur sooner than expected now that the economy is stronger.
Current Pound Sterling (GBP) Exchange Rates:
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6075
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1951
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7218
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9375
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6220
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8365
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5806
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5161
(As of 11:30 am GMT)
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