The pound currency soared through the whole week but finally halted its upward rally this Friday. As the odds of the Conservatives get better, the sterling is rampaging through the forex market.
Although, as of the moment, the GBP lost its momentum. This week has been good to the pound, aside from election news, a string of favorable data solidifies the pound.
First, the UK Manufacturing PMI for November surprised the market as it hiked from 48.3% to 48.9%. The factory PMI surpassed expectations of 48.3% prior to the report.
Then on December 3, Tuesday, the UK Construction PMI also showed a promising improvement from 44.2% to 45.3% in November. Ahead of that report, experts were only expecting an increase of 0.3% to 44.5%.
Then, on Wednesday, the UK Composite and Services PMIs further sent the pound currency into winning territories.
Then today, the Halifax House Price Index for November (MoM and YoY) also released encouraging figures.
On a Month-Over-Month basis, the Halifax House Price Index jumped from -0.1% to 1.0% last month. While on a Year-over-Year basis, it grew to 2.1% from 0.9%.
Will It Still Go Up?
This week, the pound currency had the greenback on its back foot, using its strength from the UK’s economic performance and Brexit hopes. It took advantage of the buck while it was struggling to find a clear direction in the forex market.
Then on the GBP USD climbed to ranges last seen in early May. However, the pair, as mentioned above, stopped its rally today.
The GBP USD exchange rate slipped 0.24% or 0.0031 points this Friday’s trading session, losing some of its gains from this week. The pair currently trades for $1.3124, sliding lower from its last close of $1.3155.
Still, the pound currency is expected to reel in the pair higher as the UK election approaches and the trade war heightens.
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