The British pound continued to make headway higher on Thursday, along with other risky assets, thanks to broad improvements in investor sentiment along with surprisingly strong UK economic data.
Indeed, Nationwide home prices unexpectedly rose 0.9 percent during March, marking to first increase since October 2007, which helped to push the annual rate of growth up to -15.7 percent from -17.6 percent. This is one of the only positive releases we’ve seen from the UK in quite some time, but of course, it will take much more than just one economic report to signal recovery. As it stands, the outlook for the UK remains very bleak due to the extent of the slowdown in both domestic demand and foreign demand. From a technical perspective, though, upside potential remains for GBP/USD as the pair has broken above the 100 SMA at 1.4565, but we still need to see a push above the March 24 high of 1.4781.
[B]Check out the [/B][B]Daily Fundamentals in its entirety[/B][B] for a look at what happened throughout the FX markets today.[/B]