Last week’s better than forecast manufacturing, construction and services PMI brightened the UK economic outlook and helped the Pound rally against its peers. Now, with Chancellor of the Exchequer George Osborne offering a surprisingly perky take on the British recovery, Sterling is trading in the region of a seven-month high.
The Pound Sterling to Euro Exchange Rate was in the region of 1.1884 as of 12:25 GMT
During the first half of the European session the Pound was trading within touching distance of a seven-month high against the Euro, prompting this comment from industry expert Steve Barrow; ‘I am optimistic about Sterling. The habit has been for UK data to come out stronger than expectations and so you are more likely to run with a position in the currency. The momentum is with employment.’
It is hoped that this week’s UK jobless claims report will show a decline in applications for unemployment benefit. Economists are expecting the unemployment rate to stay at 7.8 per cent – considerably above the 7 per cent level the Bank of England recently connected to interest rate increases.
1 Euro is currently worth 0.8416 pence
The Pound was able to retain recent gains as the local session progressed and George Osborne spoke out.
Osborne’s austerity measures have come under fire in the past, with many arguing that they were inhibiting rather than encouraging growth. However, with the UK’s GDP expanding by over twice as much in the second quarter as in the first it seems Osborne’s plan of action may be having the desired effect.
During a speech given in London today Osborne asserted; ‘The economic collapse was even worse than we thought. Repairing it will take even longer than we hoped. But we held our nerve when many told us to abandon our plan. And as a result, thanks to the efforts and sacrifices of the British people, Britain is turning a corner.’
While Osborne was positive about the progress the UK has made over the last few months he was cautious too, adding; ‘Of course, many risks remain. These are still the early stages of recovery. But we mustn’t go back to square one. We mustn’t lose what the British people have achieved. This is a hard, difficult road we have been following. But it is the only way to deliver a sustained, lasting improvement in the living standards of the British people.’
Although Osborne’s critics remain, and continue to accuse the Chancellor of ‘rewriting history’, his comments saw Sterling advance against peers including the US Dollar.
Current Pound Sterling (GBP) Exchange Rates:
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The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5675 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1884 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.7037 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9596 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6378 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8416 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5879 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5108 <
(As of 12:25 GMT)
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