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Pound Rises with Increasing U.K. House Prices

April 26, 2010 at 15:04 by Vladimir Vyun

Great Britain poundThe Great Britain pound gained today, paring its previous losses, after the report about the rising house prices increased the confidence that the economic recovery in the U.K. is strengthening.

These news have brought necessary refreshment to support the sterling’s performance after the concerns about the budget deficit and the uncertainty about the election’s outcome. In fact, the talks began that the Conservatives will win the election and will form the government strong enough to deal with the budget shortage, further strengthening the pound. The resulting optimism let some analysts expect that the pound will rise to 1.56 level against the U.S. dollar.

GBP/USD traded at 1.5472 as of 13:00 GMT today after opening at 1.5384. EUR/GBP traded near 0.8620 down from its opening level of 0.8673.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

2 Responses to “Pound Rises with Increasing U.K. House Prices”

  1. Steve Eldridge

    I have to transfer a fair amount of GBP to AUD in the next month. Would the likely Conservative victory strengthen the pound, making it beneficial to wait until after the election?

  2. Andrei Moraru

    If Conservatives get a sound victory, which would allow them to form the government, that would definitely be positive for pound. But I wouldn’t rely on this expectation. If there’s no definite winner, the pound will fall.

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