Forex: GBP makes gains against USD

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The Pound made major losses against the Dollar since the end of last week, as the US Dollar was boosted by hawkish comments from US Fed Bullard when he mentioned that the central bank may be cutting back its monetary stimulus. Meanwhile the Pound was weakened by negative data indicating a struggling British economy and possibly a delay in a rate hike by the BoE.

However, GDP data from Tuesday came out as expected with a change up from previous -0.6% to -0.5%.

After a four day losing streak against the US Dollar, Sterling began to rise in the US session yesterday and hit a new week high at 1.6082 this morning gaining over 80 pips since the European open.