It was yet another good day of trading for the Pound during Thursday as it climbed higher, breaking through a vital barrier of resistance against the US Dollar. Despite the promising movements, the currency was benefiting more from the weakness of its peers as opposed to its strength. At the end of trading, the pound wrapped up the day at 1.1054 against the Euro and 1.3096 against the US Dollar according to the Foreign Exchange market. This trend is likely to continue through Friday trading.
A faster-than-expected decline in growth in the German GDP estimate caused the Euro to fall behind on Thursday. During the second quarter, the single currency experienced a 10.1% drop pushing into a deeper recession than previously expected. The consumer price index in Germany also fell into deflation during July, causing further problems for the Euro.
New GDP figures in the US revealed that the economy shrank by 32.9% on an annual basis during the second quarter, although this was lower than expected. However, the US Dollar slipped lower during trading yesterday although there is hope that the Federal Reserve will improve its measure of inflation, helping to bolster the US Dollar slightly.