The Pound Makes Its Presence Known

The British pound is one of the leading currencies on the globe, quickly closing the gap that exists between itself and the United States dollar. While many thought that the Euro would be the primary currency to advance in the global market, the pound is the currency to display the strongest rebound from year to year. The predictions also call for further growth. There are many factors responsible for the positive forecast, although, the rise in positive output from the industrial sector is being cited as one of the primary reasons for financial success.

The Ripple Effect Can Be Seen

Industrial production throughout Britain has steadily been on the rise, increasing as much as 0.5 percent from month to month. The financial sector is also playing a large role in the growth that is being seen. They are keeping rates low when it comes to borrowing money. The interest costs for the average consumer are expected to stay low as well until unemployment decreases. Officials have said that they would like to see unemployment numbers as low as 7 percent before there is any rise on interest rates. Despite the good news, there is still plenty of competition for the pound from currencies throughout the world. Gold prices have still been strong, causing financial speculators to clamor in anticipation for the next meeting of the Federal Reserve in the United States.

The World Responds

China has also reported dramatic increases in terms of the exports. This information indicates a steadily growing demand for Chinese goods. The Euro is also still experiencing peaks throughout the fiscal year as well. Non-farm payroll figures coming out of the United States has recently caused day traders to seek out risk assets in greater numbers. Trends such as these are pushing the Euro into the upside of trading on a more regular basis. Not all areas of the world are experiencing success when it comes to dealing in Euros, however. Germany has experienced contractions in their trade surplus. In Euros, the figures have shrunk from over 18 billion to just over 16 billion Euros. Despite worldwide fluctuations concerning the Euro, positive industrial output from the U.K. is giving the Bank of England a considerable amount of confidence. This commitment to moving forward gives them a strong presence in front of the Economic Club of New York. The Bank of England is also confident that consumers will have a healthy amount of breathing room when it comes to lending. Their target figures for interest rates are expected to be attainable by the end of 2014.

Source: http://www.iforex.in/uk-may-post-positive-industrial-output/2379

Category: Forex