British Pound: Growth resilience supports gains against US Dollar – MUFG
MUFG’s Lee Hardman reports the British Pound (GBP) is the best performing major currency in August, with GBP/USD back above 1.3500. The United Kingdom (UK) economy is proving resilient to the energy price shock linked to the US-Iran conflict, with Q2 GDP up 0.4% after 0.6% in Q1. Strong private consumption, recovering business investment and robust services and IT activity are supporting the currency.
UK data and carry back Pound strength
"The pound is continuing to perform well this year."
"It has been the best performing major currency so far in August with cable rising back above the 1.3500."
"The pound has been supported by further evidence yesterday that the UK economy is proving more resilient than expected to the negative energy price shock triggered by the US-Iran conflict."
"It was revealed yesterday that the UK economy expanded by 0.4% in Q2 following strong growth of 0.6% in Q1."
"After stagnating following the Brexit vote in 2016 until the COVID shock in 2020, business investment has since regained upward momentum providing a tailwind for the UK economy."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Nvidia quietly reduces OpenAI data center guarantee from 250 billions to below 120 billions
Nvidia and OpenAI are close to signing a data center financing agreement in Ohio. However, Nvidia's financial guarantee has been reduced from $250 billion to less than $120 billion, covering only about 5 GW of computing power for the project's first phase. This adjustment is a direct response to investor concerns about Nvidia's risk exposure—after the previous $250 billion guarantee plan was revealed, Nvidia's stock price fell 5% in a single day. The agreement could be signed as early as this weekend.
Ivy League’s space gamble: Harvard reveals $2.2 billions SpaceX position, its largest single stock holding
Harvard University Investment Management Company disclosed that it holds $2.2 billion worth of SpaceX shares, making it the largest single stock position in its $4.3 billion US equity portfolio. This holding originated from Harvard’s early investment in SpaceX through venture capital funds, and the position has significantly appreciated after SpaceX’s public listing in June this year. The University of California also disclosed a roughly $1 billion position in SpaceX during the same period. Over the past decade, endowment funds from several universities have made substantial bets on private tech assets.
Crypto prices
More
