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Pound sticks despite positive data

Discussion in 'Forex Daily News & Outlook' started by honeyks, Aug 30, 2010.

  1. honeyks

    honeyks New Member

    Feb 26, 2010
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    by http://is.gd/e3ve5

    Forex traders saw sterling remain largely static today (August 27th), despite the release of data showing the British economic recovery is going better than expected.

    The pound is struggling to sustain its level above €1.22, edging slightly lower against most of its peers.

    Duncan Higgins, senior analyst at Caxton FX, believes the announcement that economic growth in the second quarter was up to 1.2 per cent - beating the forecast of 1.1 per cent - is a sign the UK is pulling away from the possibility of a double-dip recession.

    However, with sterling failing to make any gains after the release of the figures, Mr Higgins thinks the upward revision will not affect the views within the Bank of England that monetary policy should remain loose.

    "With the US GDP [gross domestic product] revised estimate still awaited as well as [Ben] Bernanke's key speech, the pound is unlikely to hold above $1.55 going into the weekend," he added.

    This follows a sterling rebound earlier this week, on the back of German economic data that was stronger than expected.

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