The Pound recovered ground against the Euro, US Dollar and other major peers on Friday following the release of a number of positive data reports.
House prices in the UK climbed for a 16th consecutive month in May according to a report released by Hometrack Ltd. Prices increased by 0.5% across England and Wales, slightly down on the previous month’s figure of 0.6%.
Another report released by GfK NOP Ltd showed that its consumer sentiment index advanced by three points this month to bring the index up to zero. Today is the first time in nine years that the index has climbed out of negative territory.
Adding to the positive news for the UK currency was the British Chambers of Commerce announcing that it had raised its growth forecast for this year to 3.1% from 2.8% and increased its 2015 forecast from 2.5% to 2.7%.
A separate report by the Confederation of British Industry also increased sentiment towards Sterling after it showed that its measure of economic growth climbed to its highest level since the series began back in 2003.
The sharp rise in consumer confidence mirrors the improving picture for the UK economy and economists are expecting that the UK will be one of the fastest growing economies this year.
Due to the positive data the Pound also received support from investors increasing their bets that the Bank of England will raise interest rates sooner than initially expected.
The Euro meanwhile came under pressure after data showed that monthly retail sales in Germany fell more-than-expected this month and as a report from Spain showed that inflation in the country eased more than forecast.
The US Dollar meanwhile remains under pressure from yesterday’s worse-than-expected GDP report.
Pound (GBP) Exchange Rates
|Pound Sterling||US Dollar||1.6744|
|Pound Sterling||Australian Dollar||1.7981|
|Pound Sterling||New Zealand Dollar||1.9707|
|US Dollar||Pound Sterling||0.5973|
|Australian Dollar||Pound Sterling||0.5561|
|New Zealand Dollar||Canadian Dollar||0.5067|