The Pound/Dollar is continuing to recover from recent losses and is currently attempting to climb to a weekly high at 1.56, following the news that UK GDP growth matched estimates at an annualised 2.6%. While the pace of economic momentum in the UK might be slowing down slightly, this is still exceedingly strong growth and should raise investor sentiment towards the Pound. The UK economy is attractive to investors and if it was not for the depressed commodity prices inspiring the UK to encounter unexpected inflation risks, the Bank of England (BoE) would have most likely raised interest rates by now. The only problem is that since inflation levels in the UK are around record lows and with the recent resumed selling in commodity markets further weighing on inflation prospects, the BoE will continue to leave interest rates unchanged for a long time yet.
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