Sterling Gains after Strong UK Data Released
03 March 2010 - Currency Exchange UK
Sterling Gains after Strong UK Data Released
After what has been a poor week for the pound, today it rose against the US dollar and the euro as positive data was released in the UK.
Consumer confidence reached a two-year high while services sector activity reached a three-year high in February.
Apparently, economists and analysts had not predicted such strong improvements. The pound rose by over half a cent against the dollar to $1.5062 in this morning’s trade, while the euro fell 0.3 per cent to 90.58 pence.
Since records began in 2004, consumers have not been as confident about the coming six months as they are now.
The good data news came as a stark contrast the early part of this week, with political uncertainty and a gloomy outlook causing the pound to tumble to lows not seen in months, against the euro and the dollar.
According to the latest poll, the Conservative party is now only two points ahead of the Labour party – a fact which could lead to a so-called ‘hung’ parliament. This is an unwelcome situation as it would mean that measures to improve the massive deficit in the UK would be slowed down.
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