The pound reversed recent losses to gain 0.75% on the aussie yesterday in the wake of some positive economic data, which spurred investor demand.
- A GDP revision showed that British output contracted 0.6% in the second quarter compared with activity in the first three months of 2009, better than the previous estimate of -0.7%, according to the Office for National Statistics
- This data was supported by higher realised sales and an increase in net lending to individuals, which, together, underlined hopes that the UK should pull out of recession in the 3 rd quarter.
- The positive market reaction enabled the pound to distance itself from long-term lows hit recently against the aussie, though an increasing UK current account deficit may weigh on sterling’s recovery.
- In trading this morning, the Australian dollar has rebounded, already up 0.4% on the day, following better-than-expected month on month retail sales, which add to the case for a rise in interest rates as early as November.
Related posts:
- The UK economy is showing signs of recovery, which has buoyed the ailing pound
- The pound has reversed recent losses against the aussie, supported by rising risk aversion
- Positive data from NZ keeps the kiwi advancing against the pound
- More positive investor sentiment returned to the UK yesterday, supporting a slight pound recovery
- Pound edged higher against the euro yesterday and has consolidated its position this morning
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