Currency Exchange UK

 

Sterling reaches 4 Week Highs

Sterling reaches 4 Week Highs 

The pound sterling rose again today after positive data from the UK economy was released earlier this week.

By today, it gained to its highest level in nearly a month against the US dollar.  The reason for the latest climb was better-than-expected industrial output in the UK.

Also, earlier in the week it was announced that the trade deficit of Britain shrank more than had been forecast  - the trade gap closed to £6.784 billion in November 2009.

Another good-news factor were retail sales figures: it was announced on Tuesday that year-on-year sales rose 4.2 per cent in December 2009.

Some economists jumped on the good news and indicated that Britain may have exited the recession in the fourth quarter.  Yet others were less confident – they warned against getting too optimistic and highlighted that the UK still has a shaky political situation in the run up to the general election in June this year.

The news caused some economics to indicate that Britain may have left the recession in the fourth quarter.  This would be a big step for the country, which has so far been somewhat slower than other large economies in recovering.

Against the US dollar, the pound rose to $1.6283.  Meanwhile the euro retreated to 89.15 pence.  Analysts say that the European single currency is struggling under weak economic performances from some EU nations.

Later today, currency analysts and investors will digest the latest estimation for Britain’s GDP (Gross Domestic Product), due to be released by the National Institute of Economic and Social Research (NIESR) – a trusted resource point.