GBP/USD at 12 week high at 1.57 after Osborne Comments

The pound rose to its highest level versus the dollar in 12 weeks as U.K. Chancellor of the Exchequer George Osborne said Britain’s economy is turning a corner and is in the early stages of a recovery.

Sterling was within 0.5 percent of a seven-month high versus the euro before a report on Sept. 11 economists said will show U.K. jobless claims fell last month. Unemployment held at 7.8 percent in July, according to a separate Bloomberg survey, above the Bank of England’s 7 percent threshold for assessing interest rates. Gilts were little changed before the Debt Management Office sells 6.5 billion pounds ($10.2 billion) of government bonds due in 2023 and 2044 this week.

“I am optimistic about sterling,” said Steve Barrow, the head of Group-of-10 research at Standard Bank Plc in London. “The habit has been for U.K. data to come out stronger than expectations and so you are more likely to run with a position in the currency. The momentum is with employment.”


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.