The Great Britain pound surged after central bank Governor Mark Carney signaled that he sees no need for additional monetary stimulus as economic recovery gains momentum. Such comments were definitely positive for the currency, which was unable to outperform the Japanese yen though.
The Bank of England leader said yesterday:
My personal view is, given the recovery has strengthened and broadened, I donât see a case for quantitative easing and I have not supported it.
Carney also explained his view on the current economic situation in the United Kingdom:
The recovery is broadening, so itâs more than just recovery in a particular sector of the economy and we are seeing an associated pick-up of growth in Europe, and the United States is continuing to perform well. Within the UK, we are probably leading the pack of the major advanced economies as we speak right now.
One can hardly argue that recently Britain’s macroeconomic data was indicating at strong recovery. Friday’s reports supported the optimistic outlook. Among the reports was the consumer sentiment data that showed an improvement (though Britons remained somewhat pessimistic).
GBP/USD jumped from 1.6038 to close at 1.6142 yesterday. EUR/GBP declined from 0.8407 to 0.8374. At the same time, GBP/JPY ticked down from 158.73 to settle at 158.55.
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