Pound Jumps to Highest Price in More Than a Year Against Euro

January 5, 2012 06:09 AM | 0 Comments
The Great Britain pound jumped against the euro to the highest level in more than a year as concerns about the problems of Europe made the UK currency more appealing. The sterling also advanced versus the Swiss franc, but dropped against the US dollar.

The Great Britain pound jumped against the euro to the highest level in more than a year as concerns about the problems of Europe made the UK currency more appealing. The sterling also advanced versus the Swiss franc, but dropped against the US dollar.

Spain had to help Valencia region with a €123 million payment to Deutsche Bank AG. Yield on Spain’s 10-year bonds rose 14 basis points as a result. Britain’s currency played a role of a haven from Europe’s woes before and it’s considered for such a role by Forex traders again.

The United Kingdom has its share of problems, making the pound weaker against some currencies, including the dollar. Still, the recent economic data wasn’t bad. The Manufacturing Purchasing Managers’ Index rose from 47.7 to 49.6 in December, while the Construction PMI advanced from 52.3 to 53.2 last month. Both indices were expected to decline.

GBP/USD fell from 1.5618 to 1.5598 as of 5:22 GMT today. GBP/CHF climbed from 1.4584 to 1.4702 yesterday and traded near that level today. EUR/GBP was at 0.8281 after opening at 0.8285 today, while it reached 0.8261 yesterday — the lowest level since September 2010.

Source: www.topforexnews.com

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