GBP/USD Moves to 1.53 on Bets U.K. Avoided Another Recession

The pound rose against the euro, following three weeks of losses, before a government report this week that economists said will show the U.K. avoided falling into a triple-dip recession last quarter.

Sterling advanced versus all except one of its 16 major counterparts as a person familiar with the plan said Chancellor of the Exchequer George Osborne will unveil the second phase of a strategy to boost loans for small companies and consumers. Gilts gained even after Fitch Ratings cut Britain’s credit rating last week. The Office for National Statistics will release its report on gross domestic product on Friday.

“Sterling sold off last week as a lot of bad news has been priced in and now it seems to be stabilizing into the GDP data,” said Lee Hardman, a foreign-exchange strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “The market consensus is for flat growth and not a triple-dip recession. Longer-term, we still expect the pound weakness to continue.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.