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Forex pairs in this Article » GBP/USD (New York) - It's a good time to take stock and remind ourselves of some of the key events affecting G7 currency markets, and in particular the GBP/USD, in recent weeks, notes Jonathan Pryor, Corporate Treasurer at Investec.

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Despite a weak finish last week, the Pound has had a solid run of late on the back of a raft of positive Sterling data - we saw the Composite UK PMI index post its highest reading since 1998, when records began. The UK housing market continues to recover (the RICS survey showed July house prices rising the most since 2006 whilst average Nationwide and Halifax indices show that prices have risen every month since October last year.)

Retail sales also gave support to the Pound with a 1.1% rise in July and last week the revised UK Q2 GDP estimate showed that UK GDP grew by 0.7% on the quarter, a touch higher than the +0.6% initially reported.

“Given all of the above, it’s not a surprise that markets have largely discounted the idea that BoE governor Carney will keep UK rates at a record low until 2016, as long as unemployment remains above 7%. Many believe this will now happen in 2015 or even as early as 2014 given the economic recovery seems to be gathering pace, with UK yields continuing to rise higher.”
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