Positive News for the British Pound
Two encouraging pieces of news emerged from the UK economy on Tuesday, both of which are likely to give the British Pound a boost in the currency markets and will be of keen interest to anyone involved in online Forex trading.
Stronger Growth Than Expected
The first of these was the announcement from the CBI that the British economy expanded at a faster rate in the past quarter than it did in the quarter before that.
It emerged that UK growth came in at 0.7 percent between January and March of this year, which compared favourably with the 0.6 percent growth posted in the final three months of 2014.
Services Performing Well
The second positive development for the UK economy occurred when it was announced that the services sector, which is one of the largest and most important sector across the whole of the British economy, had grown faster than at any time in over six months. The sector posted a very strong figure of 58.9, which is a 2.2 percentage points higher than that posted in February. That a key UK employment and business sector is presently performing so well bodes well for the UK economy’s recovery and may help to bolster the Pound in the coming months.
General Election Looming
Following on from the last two pieces of news on the UK economy, it is important to acknowledge one potential bump in the road for the Pound Sterling in the coming weeks. The latest opinion polls, including those released on the 7th April, all point to a hung parliament. Without a majority Government it is possible that the currency markets may get slightly worried about an election of a broad coalition of progressive parties not as committed to deficit reduction and fiscal prudence as the Conservative and Liberal Democrat coalition of the last five years.
