The Pound made reasonable gains folowing the release of key inflationary data this morning which actually came out higher than expected.
The main way to curb high inflation is to raise interest rates and an interest rate hike is generally seen as positive for the currency concerned.
Although I don’t see an interest rate hike in the near future it does leave scope for one going forward therefore has led to Sterling strength.
Over the course of the rest of the afternoon the Pound has slipped back however as the grounded plane saga continues.
I personally feel this whole matter has been majorly damaging to the U.K economy and there will be more to come from this which in turn may be damaging for the Pound.
Apparently things are due to get back to normal shortly but there is one hell of a backlog to clear and a lot on money has been lost.
Those with CAD interest may wish to be wary as they have suggested rate hikes in the near future and that their economy has recovered at a rapid pace, at the time of writing this GBP/CAD had dropped by 1.38%
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