GBP Continues to Rise Against USD
Good morning and Happy Valentine’s Day to one and all. Starting with the least surprising news of the day, UK house prices rose to a record level in January courtesy of an increase in first time buyers and an in movement across the UK and not just London. Prices rose by 5.2% year on year in January.
GBP continues to strengthen against the USD and this shows no signs of abating at the moment with the next trading level we are looking at being 1.6737 and we haven’t seen these levels since May 2011. Why is it moving so much? Risk appetite is back. When this happens traders are a bit more carefree and so will take their money out of USD. This normally happens when there is more of a sense of stability in the economy which the Bank of England are advocating at the moment. We are waiting for confidence figures out of the US today and this could see the rise continue.
In the Eurozone, Germany, France and Holland all posted positive reports and beat estimates for growth. Although the figures were hardly mind blowing, they certainly show enough to confirm that there is an economic recovery in Eurozone, however slowly this may be taking place.